Germany on Tuesday formally rejected UniCredit's offer for Commerzbank shares, citing a low price and concerns about what it called the Italian lender's aggressive approach.
UniCredit's initial offer period for Commerzbank shares is winding down, with both banks digging in their heels in the months-long battle for control of one of Germany's most important lenders.
On Monday, the Italian bank hailed the fact that it had exceeded the 30% threshold it had set for this takeover bid. The Milan-based lender launched its bid, valued at 35 billion euros ($40.6 billion), in early May to gain control of its German rival and cement its status as a European heavyweight.
The German government holds a 12% stake in Commerzbank acquired in the wake of the 2008 global financial crisis and has long objected to UniCredit's campaign for a tie-up.
"Accepting the offer was already not an option from a financial point of view, as it does not include an appropriate premium on the current share price of Commerzbank’s shares," the country's finance agency said on Tuesday.
