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By Tom Sims and Christian Kraemer
FRANKFURT (Reuters) – Germany is not going to promote any extra shares in Commerzbank (ETR:) in the intervening time and the financial institution’s technique is “geared in direction of independence,” the nation’s Finance Company mentioned on Friday.
The assertion comes days after Italian financial institution UniCredit introduced it had purchased a 9% stake in Commerzbank – from the German authorities in addition to on the open market – and its chief govt mentioned he needed to discover a merger.
The German authorities, which nonetheless owns 12% of Commerzbank, would play a key function in whether or not any deal can happen.
Nonetheless, over the previous week labour unions and Commerzbank administration have known as on the federal government to carry off on any additional share gross sales.
The Finance Company, which is a part of the German finance ministry and manages authorities holdings, mentioned that at a gathering on Friday it had determined it “is not going to, till additional discover, promote any further shares”.
Commerzbank and UniCredit did not instantly reply to requests for remark.
“Commerzbank is a secure and worthwhile institute. The financial institution’s technique is geared in direction of independence. The Federal authorities will accompany this till additional discover by sustaining its shareholding,” the company mentioned.
This implies the federal government’s plan is to now maintain its Commerzbank shares past the 90-day lockup agreed on the time of the share sale final week, in line with an individual conversant in the discussions.
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