UniCredit boosts Alpha Bank stake to 26%

MILAN (Reuters) -Italy’s UniCredit said on Thursday it has increased its stake in Greece’s Alpha Bank to nearly 26% after entering into financial instruments for an additional 5% holding.

The impact on UniCredit's core capital will be around 65 basis points, the Italian lender said.

UniCredit became Alpha Bank's main shareholder in late 2023, buying the Greek bank bailout fund's stake for 293.5 million euros.

It nearly doubled its holding to slightly above 20% in May, adding a 9.7% stake through financial derivatives. It said it would seek ECB approval to acquire up to 29.9% of Alpha.

While UniCredit's M&A ambitions are facing government stumbling blocks at home and in Germany, where it has built a large stake in Commerzbank, Greek authorities have welcomed the move on Alpha.

"We are grateful to the Greek government, the central bank and other Greek institutions for welcoming us and encouraging our investment," UniCredit's CEO Andrea Orcel said in a statement.

UniCredit said on Thursday it cannot convert its derivatives holdings into shares that would lift its direct stake in Alpha Bank above 9.9% until it receives regulatory approval, a process that is currently underway.

(Reporting by Elvira Pollina; Editing by Kirsten Donovan)