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(Sharecast News) - The Germany government has rejected UniCredit's hostile bid for Commerzbank, refusing to sell shares in the German lender.
The Federal Finance Agency called UniCredit's takeover approach "aggressive", citing a lack of an appropriate premium.
The government added that Commerzbank must be "safeguarded" given its vital role as a financier to German small and medium-sized enterprises, and its central function to Frankfurt as a financial centre.
"The steering committee supports the strategy of independence of Commerzbank AG and rejects the aggressive approach of UniCredit," the FFA said.
UniCredit effectively holds around 42% of voting rights in favour of its 40n bid, well above Germany's 30% mandatory bid threshold that it set out to achieve with the offer, it said.
That comprises a direct stake of 26.8%, valid acceptances representing 12.4% and 3.2% in share-settled derivatives.
Germany's government is Commerzbank's second-largest shareholder with a stake of nearly 13%.
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