UniCredit Taps Jefferies for Hedging, Optionality on Commerzbank

UniCredit SpA is taking out additional protection on its existing holdings in German lender Commerzbank AG and securing optionality for any future moves, people with knowledge of the matter said.

The Italian bank has been working with Jefferies Financial Group Inc. in recent days to hedge more of its Commerzbank position using complex financial instruments that mitigate the risk of share price declines, the people said, asking not to be identified because the information is private.