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FRANKFURT (Reuters) – Commerzbank shares fell on Monday after the German government decided to keep its 12 percent stake in the group for the time being, while Italy’s UniCredit wants a merger.
The German Financial Agency said on Friday that the state would not sell any more Commerzbank shares for the time being because the bank’s strategy was “oriented towards independence.”
The announcement underlines Berlin’s opposition to a takeover of the German bank by UniCredit and analysts now say it is unlikely that the Italian bank will make a takeover bid anytime soon.
At 7:50 GMT, Commerzbank shares were down 4.31% at 15 euros, while UniCredit lost 1.05% at 37.60 euros.
Commerzbank shares had gained about 24% since September 11, when UniCredit announced it had acquired a 9% stake in the German bank and expressed interest in a merger. UniCredit’s stock had gained 5%.
The Italian bank’s interest caught Berlin by surprise and sparked opposition from unions. Commerzbank has had to adopt a defensive strategy amid fears that a merger would lead to massive job losses and choke off lending to small and medium-sized businesses.
The group, which has more than 25,000 corporate customers, accounts for almost a third of German foreign trade payments and more than 42,000 employees, is a pillar of the country’s economy.
Berlin still owns 12% of the company after selling 4.5% of its shares to UniCredit and its agreement is essential to a possible merger.
(Written by Tom Sims and Paolo Laudani, French version by Kate Entringer, edited by Blandine Hénault)
Copyright © 2024 Thomson Reuters
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