German lender Commerzbank said Wednesday it was committed to its strategy after Italian bank UniCredit formally upped its stake in its rival, laying the ground for a potential takeover bid. Commerzbank has strongly resisted a possible takeover by UniCredit since the Italian bank announced in September it had quietly built up a stake in the German group.

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 SpA, the Italian lender that hopes to acquire Commerzbank AG, increased its equity stake in the German firm and became its largest shareholder after converting derivatives into stock. The move gives Milan-based UniCredit about 20% of the effective voting rights and it intends to eventually convert its remaining “synthetic position” to boost its Commerzbank holding to roughly 29%,