German government rejects UniCredit's €35bn takeover bid for Commerzbank

Germany's Federal Finance Agency announced that the government, which holds a 12% stake in Commerzbank, will not accept UniCredit's public takeover offer. The agency said the bid, which values Commerzbank at about €35 billion via a share‑swap of 0.485 UniCredit shares for each Commerzbank share, does not provide an adequate premium and reflects an aggressive approach by the Italian lender.

Both the German government and Commerzbank’s board and supervisory council have recommended that shareholders reject the proposal. Commerzbank reported a record first‑quarter profit of €913 million but announced plans to cut another 3,000 full‑time jobs by 2030, adding to earlier job‑cut announcements. The Frankfurt public prosecutor’s office has opened a preliminary investigation into possible market manipulation related to the bid after a complaint from the bank’s workers’ council. On the day of the announcement, Commerzbank shares rose about 1.1% to €36.58.

UniCredit dismissed allegations that some of the shares it acquired were borrowed from friendly banks and warned it could seek changes to Commerzbank’s supervisory and management boards if it gains enough support at the upcoming shareholders’ meeting.