Germany rejects UniCredit’s 39 billion euro bid for Commerzbank
What’s next: German takeover rules are set to extend the offer from June 20 to July 3 as Berlin backs Commerzbank’s independence.
Germany has rejected UniCredit’s 39 billion euro takeover bid for Commerzbank, arguing the offer does not provide an adequate premium and backing the German lender’s independence. The Finance Agency, which manages Berlin’s stake of more than 12% in Commerzbank, said accepting the bid was not financially viable and criticized UniCredit’s approach as aggressive. The government also argued Commerzbank is important to financing the German economy and to jobs in Frankfurt, where the bank is based. UniCredit disclosed its Commerzbank stake nearly two years ago and made a full offer in March. Under German takeover rules, the bid is expected to be extended from June 20 to July 3.