CashNews.co
Following an expression of interest in Germany’s Commerzbank by Italy’s UniCredit, the German government does not want to sell any more of its Commerzbank shares for the time being.
The decision was made by the steering committee in Berlin, the German Finance Agency said on Friday. This also includes any share buybacks by Commerzbank.
“Commerzbank is a stable and profitable institute. The bank’s strategy is geared towards independence. The Federal government will accompany this until further notice by maintaining its shareholding,” the Finance Agency said in a statement.
Commerzbank chief executive Manfred Knopf has confirmed contact with the Italian bank, but said Commerzbank remains focused on implementing its own strategy.
Commerzbank is implementing its “Strategy 2027″ in confidence that this would boost the bank’s profitability and growth,” Knopf has said.
The German state took a large stake in Commerzbank following the 2008 global financial crisis. UniCredit subsequently acquired a stake of 4.5% as part of the German government’s phased withdrawal. It has since increased its stake through purchases in the market.
The Italian bank now holds 9% of the shares and the German government holds 12%.