Germans Won't Give Up Their Bank: Italians Officially Rejected

The reasons cited were the offer price, which was considered too low, and concerns about what was described as the Italian bank’s aggressive approach. This decision marks the latest development in the months-long struggle between the two financial institutions over control of one of Germany’s most important banks.

The German government owns a 12 percent stake in Commerzbank, acquired during the bank’s bailout following the 2008 global financial crisis, and has opposed a merger with UniCredit from the outset.

The state agency stated that the proposed price does not offer an adequate premium over Commerzbank’s market valuation, making acceptance of the offer “out of the question, even from a financial perspective,” according to Reuters, as reported by Biznis.rs.

At the same time, Berlin has reiterated its support for Commerzbank’s independence, highlighting the bank’s important role in financing Germany’s medium-sized and family-owned businesses, known as the Mittelstand, as well as its significance to Frankfurt, the country’s leading financial center.

However, despite the government’s rejection of the offer, UniCredit could still theoretically gain control of the bank. The government’s shareholding gives it representation on the supervisory board, which plays a key role in appointing management and setting corporate strategy.

The situation has been further complicated by a preliminary investigation launched by the Frankfurt public prosecutor’s office into suspected market manipulation related to UniCredit’s offer. The investigation followed a criminal complaint filed by Commerzbank’s works council, which raised concerns about the circumstances under which the Italian bank had previously acquired shares in its German rival at below-market prices.

Commerzbank’s shares fell below the value implied by UniCredit’s offer on Tuesday, further reducing the attractiveness of the bid to shareholders. Under the terms of the offer, shareholders would receive 0.485 newly issued UniCredit shares for each Commerzbank share, valuing the German bank at €37.33 per share. Commerzbank shares are currently trading at a slightly lower price.

The formal deadline for accepting the offer expires on Tuesday, but will be extended by an additional 15 days, beginning on 20 June.