German Government and UniCredit Discuss Commerzbank Stake Amidst Hostile Reception
Berlin, Sept 13 (Reuters) – German government officials have been in discussions with UniCredit following the Italian bank's recent acquisition of a 9% stake in Commerzbank, according to a German government source. The talks, which were reported exclusively by Reuters, signify a notable development regarding the potential involvement of a foreign institution in one of Germany’s largest banks.
UniCredit, Italy's second-largest bank, unexpectedly acquired the stake in Commerzbank earlier this week, leading to surprise and concern among German regulators and management. The move has been met with resistance from local management and labor unions, who are wary of the implications for the bank's future and its workforce.
The German government source indicated that while it is open to the idea of a partnership or acquisition, it must respect Commerzbank's position and the strong opposition from its employees. "We must take Commerzbank's wishes into consideration. There is obviously a strong rejection by the workforce," the source said.
Trade unions, concerned about potential job losses, have also voiced strong opposition to the acquisition. Frank Werneke, Chairman of the German Verdi labor union, has urged the government to halt any further sale of Commerzbank shares to prevent a takeover.
Currently, the German government retains a 12% stake in Commerzbank, following a state bailout during the 2008 financial crisis. The bank remains one of Germany's major privately-owned financial institutions and plays a significant role in lending to the Mittelstand, the country's vital network of medium-sized businesses.
Both UniCredit and Commerzbank declined to comment on the ongoing discussions. A spokesperson for the German Finance Ministry did not confirm the details of the talks. The outcome of these discussions will be closely watched as they may influence the future direction of one of Germany's key financial entities.
