Political Storm in Germany After Unicredit’s Advance on Commerzbank

The unprecedented advance by Italian banking group Unicredit to acquire German lending institution Commerzbank is in the spotlight in the European press. According to the respected French newspaper Les Echos, while Unicredit is asking Berlin authorities for up to 29.9% of Commerzbank’s capital, Germany’s political leaders are “raising the tone” in the face of this Italian financial attack. As noted by financial analysts, 29.9% is approaching the 30% threshold, above which there is an obligation to make a public takeover bid.

Les Echos recalled that “the Italian bank announced the acquisition of an additional 11.5% stake in the German group, which is added to the 9% already held by Unicredit.” Unicredit’s rate will rise to 21%, subject to the European Central Bank’s (ECB) permission to exceed the 20% threshold. According to the French newspaper, the German government “is not favorably disposed” to the operation: “Unicredit is clearly putting pressure on the German federal government and Commerzbank management, which is meeting with the supervisory board this week for a strategic seminar,” writes Les Echos, according to which “Unicredit faces a heavy battle in Germany, which views the Italian financial operation as an attack by a hostile ‘raider.’”

For the German media, Germany is “in shock over the Italian blitzkrieg”: as a financial predator, Teutonic finance was once again “wearing the role of prey.” Even the leaders of individual German states are raising their voices against what they call “the sell-out of Germany’s national heritage.” Boris Rhein (pictured), prime minister of the German state of Hesse, has expressed “great concern” over the “potential takeover” of Commerzbank by Unicredit. “It is clear to me,” said the German politician, “that we must not allow the sale of our flagships. The entire German economy benefits from the sovereign financial center in Frankfurt. I expect the federal government to finally act and cooperate with us in favor of a strong financial and commercial headquarters,” Rhein said, criticizing the German federal government, which has “carelessly prepared the ground for these investments.”