Germany's federal authorities have refused UniCredit's proposal to swap shares for a stake in Commerzbank, reaffirming opposition to any deal between the two banks. The interministerial steering committee of the Financial Market Stabilisation Fund rejected the offer on financial grounds, saying it failed to provide a sufficient premium to Commerzbank's prevailing share price. Officials reiterated support for Commerzbank remaining a standalone institution, citing its importance for funding German businesses, especially mid-sized companies, and its role as a key employer in Frankfurt's financial sector. Germany holds a 12% stake in Commerzbank dating back to the 2008 financial crisis, giving the government representation on the supervisory board. The decision follows a criminal complaint filed by Commerzbank's workers' council over UniCredit's purchase of shares below market value, though UniCredit stated its disclosures have been fully compliant with German securities laws.
Commerzbank AGGerman government rejects UniCredit's share exchange offer, supporting Commerzbank remaining standalone.
UniCredit SpAGerman authorities reject UniCredit's share exchange proposal, blocking its attempt to increase stake in Commerzbank.