FRANKFURT (Reuters) – Shares of Commerzbank (ETR:) traded 3.1% decrease on Monday after the federal government stated that it might retain its 12% stake within the German financial institution for now in a transfer that may seemingly hold any merger with Italy’s UniCredit on maintain.
Late on Friday, Germany’s Finance Company stated the state is not going to promote any extra shares in Commerzbank in the meanwhile and the financial institution’s technique is “geared towards independence”, within the clearest signal but that the federal government would not at present favour a takeover of the nation’s No. 2 lender.
The financial institution’s shares had gained round 24% since Sept. 11, the day that UnCredit introduced it had ammassed a 9% stake in Commerzbank and expressed curiosity in a merger.
The announcement by the finance company, an arm of the German finance ministry, means UniCredit was now unlikely to make a takeover supply quickly, some analysts have stated.
