Italian lender UniCredit has increased its equity stake in Commerzbank to 20% by converting derivatives into stock. The move positions UniCredit as the largest shareholder of Commerzbank, surpassing the German government,

UniCredit on Tuesday said it had increased its equity stake in Commerzbank to about 20 per cent, as the Italian bank doubles down on a potential takeover of Germany’s second-largest lender despite opposition from Berlin.

Italy's second biggest bank UniCredit owns an equity stake of around 20%, with corresponding voting rights, in Commerzbank after converting into shares derivatives which gives it an overall 29% holding in its German rival.