German Government Warns Against Unicredit's Hostile Takeover of Commerzbank
Berlin and Frankfurt are currently witnessing a brewing conflict over the future of Commerzbank, as the German government has issued a stern warning to the Italian banking giant Unicredit. State Secretary of Finance Florian Toncar expressed concerns about Unicredit's recent acquisition of additional shares in Commerzbank, suggesting that a hostile takeover would pose significant risks. According to Toncar, the situation has caused considerable uncertainty among employees and political circles alike, emphasizing that such an aggressive approach should not be the goal.
Commerzbank's Current Standing and Government Involvement
Despite the looming threat of a takeover, Commerzbank remains a strong and profitable entity, with the German government retaining a 12% stake. Finance politician Michael Schrodi reassured stakeholders that the government is committed to maintaining Commerzbank's independence and plans to secure jobs. He criticized Unicredit's approach as sneaky and aggressive, stating that the Italian bank built its stake in Commerzbank without transparency or equal footing.
Unicredit's Position and Market Reactions
Unicredit, led by CEO Andrea Orcel, is keeping its options open regarding a potential merger with Commerzbank. Orcel highlighted the strategic fit between the two banks but clarified that there is currently no formal takeover offer. Following the German government's rejection of a takeover, Commerzbank's stock fell over 5% in Frankfurt, while Unicredit's shares declined by 3% in Milan amid broader concerns regarding the Italian banking sector. Orcel remains optimistic, suggesting that a merger could be a significant step for the European banking landscape.
