View of a wall with the Commerzbank logo. (zu dpa: «Berlin slams UniCredit for ‘inappropriate’ Commerzbank takeover offer») Hannes P Albert/dpa
The German government on Wednesday criticized UniCredit over what it called a “completely inappropriate and unfair” takeover bid for rival Commerzbank.
UniCredit submitted a formal offer for Commerzbank on Tuesday, stepping up months of pressure on the German lender, which has continued to resist the approach.
The Milan-based bank, which has steadily increased its holding to nearly 30% of Commerzbank shares, is seeking to acquire further stock through a voluntary share-swap offer set to expire on June 16. The offer period could be extended until July 3.
Commerzbank’s management, works council and employees have so far opposed what they view as a hostile bid. UniCredit has outlined a restructuring plan in the event of a takeover that could result in around 7,000 full-time job cuts, fuelling concern in Germany.
The German government, which still holds a 12% stake in Commerzbank, has also rejected the move. Deputy government spokesman Sebastian Hille described UniCredit’s approach as “completely inappropriate and unfair.”
At the Finance Ministry, a spokesman reiterated Berlin’s support for Commerzbank’s independence, saying a “hostile, aggressive takeover” would be unacceptable, particularly given the bank’s status as a systemically important institution.
“It is clear to us that Commerzbank plays a vital role in financing the German economy and its small and medium-sized enterprises. It is also a major employer and central to Frankfurt as a financial centre — and both of these aspects must be safeguarded in the future,” the spokesman said.
Asked whether the government could increase its stake in Commerzbank, he declined to comment, describing it as a hypothetical scenario.