Germany rejects UniCredit's bid for Commerzbank

Germany's Federal Financial Supervisory Office officially rejected the takeover offer made by Italy's UniCredit for the German lender Commerzbank. The agency said the bid undervalued the shares and raised concerns about the "aggressive approach" of the Italian bank. The German state, which holds a 12% stake in Commerzbank acquired after the 2008 financial crisis, emphasized the importance of preserving the bank's independence and its role in financing the country's Mittelstand and the Frankfurt financial hub.

The offer period is nearing its deadline, with UniCredit proposing an exchange of 0.485 of its shares for each Commerzbank share, valuing the German bank at roughly €37.33 per share—below the current market price. Commerzbank shares fell after the rejection. Concurrently, Frankfurt prosecutors opened a preliminary investigation into possible market manipulation after the bank's employee council lodged a criminal complaint.