Friday, November 22, 2024

Germany must oppose UniCredit takeover of Commerzbank, bank employees and union warn

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FRANKFURT (Reuters) -Commerzbank employees and a prominent labour union on Friday called on the German government to oppose a takeover of the German lender by Italy’s UniCredit.

The joint statement from the Commerzbank works council and the Verdi union marks the starkest opposition yet by employee representatives of a possible tie-up between the two banks.

The two groups said they were calling on the government “to work together with employees for a strong, independent Commerzbank”.

The appeal comes days after the Italian bank announced it had bought a 9% stake in Commerzbank – from the German government and the open market – and its leader said he would be keen to explore a merger.

The German government, which still owns a 12% stake in Commerzbank, will play a key role in whether any deal can take place.

“We call on the German government not to make any hasty decisions regarding the sale of its shares,” said Uwe Tschaege, the chairman of Commerzbank’s works council.

German Finance Minister Christian Lindner, whose ministry manages the government’s Commerzbank holding, said on Thursday that the government does not want to stay permanently invested in a bank.

But the government does not currently plan further sales, sources have told Reuters, and Commerzbank has also asked the government to retain its stake for now.

(Reporting by Tom Sims, editing by Miranda Murray)

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