News
Acquisition · Commerzbank · Germany · UniCredit
Germany officially rejected UniCredit’s offer for Commerzbank shares, citing an inadequate price and concerns over UniCredit’s “aggressive approach,” marking a significant development in the months-long contest for control of the important German lender.
The German government maintains a 12% stake in Commerzbank, acquired during the 2008 global financial crisis, and consistently opposed UniCredit’s pursuit of a merger. The finance agency stated that accepting the offer was not an option from a financial point of view, as it did not include an appropriate premium on Commerzbank’s current share price.
The agency, which manages the government’s holdings, expressed strong support for Commerzbank’s independence, emphasizing its critical role in financing Germany’s medium-sized “Mittelstand” companies and its integral position in Frankfurt. Separately, Frankfurt prosecutors confirmed a preliminary investigation into possible market manipulation related to the offer, following a criminal complaint lodged by Commerzbank’s workers’ council.
UniCredit acknowledged the matter, stating the prosecutors’ response was “in line with protocol.” Commerzbank shares slipped below the €37.33 per share price implied by UniCredit’s buyout offer on Tuesday, after trading consistently above this level since the bid’s launch. The offer concludes Tuesday but extends for an additional 15 days from June 20.
