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FRANKFURT (Reuters) – Shares of Commerzbank traded 3.1% lower on Monday after the government said that it would retain its 12% stake in the German bank for now in a move that will likely keep any merger with Italy’s UniCredit on hold.
Late on Friday, Germany’s Finance Agency said the state will not sell any more shares in Commerzbank for the time being and the bank’s strategy is “geared towards independence”, in the clearest sign yet that the government doesn’t currently favour a takeover of the nation’s No. 2 lender.
The bank’s shares had gained around 24% since Sept. 11, the day that UnCredit announced it had ammassed a 9% stake in Commerzbank and expressed interest in a merger.
The announcement by the finance agency, an arm of the German finance ministry, means UniCredit was now unlikely to make a takeover offer soon, some analysts have said.
(Reporting by Tom Sims and Paolo Laudani, Editing by Rachel More)