The eight investment companies are requesting damage payments to HypoVereinsbank (HVB) of E17.35 billion, which, according to The Financial Times, is though to mark the largest corporate claims case ever to occur in Germany.
The lawsuit, which was filed with the regional court in Munich, also names Alessandro Profumo and Wolfgang Sprissler, the respective CEOs of UniCredit and HVB, as defendants.
The shareholders are claiming that HVB’s management substantially damaged the bank by selling off the majority of the company’s most valuable assets substantially below market value to UniCredit or its subsidiaries.
Among other asset sales, HVB’s shareholders are objecting to the divestment of the company’s 77% stake in its Bank Austria Creditanstalt subsidiary to UniCredit at E12.4 billion below its market value, and the sale of its asset management companies Activest and Nordinvest to a subsidiary of UniCredit for around E2.6 billion below their market value.
Jonathan Spitzer, portfolio manager at Arnhold & S Bleichroeder Advisers, investment advisor to one of the eight plaintiffs, said: It needs to be ensured that HVB and its minority shareholders receive full compensation for any damages inflicted by UniCredit, as provided for by statutory law.
This is especially true in view of the upcoming shareholders meeting of the company, which will decide upon the squeeze-out of the remaining minority shareholders and the cash compensation that needs to be paid by UniCredit for the outstanding shares, Mr Spitzer concluded.
According to The Financial Times, UniCredit, which owns 95% of HVB, has declined to comment, claiming that it has not yet received notification of the claim.
