Market Analysis

Commerzbank (ETR: CBKG) shares dropped by 3.1% on Monday following an announcement from the German government regarding its 12% stake in the bank. The government confirmed it would maintain its current holding for the time being.

On Friday, Germany's Finance Agency stated that the state would not sell any more Commerzbank shares in the near future, emphasizing the bank's strategic focus on maintaining independence. This announcement clarified that the government is not currently inclined towards a takeover of the country's second-largest lender.

Commerzbank shares had previously risen by approximately 24% since September 11, following UniCredit's disclosure of a 9% stake in the bank and its interest in a potential merger. The finance agency's statement now indicates that a takeover offer from UniCredit is less likely in the immediate future.

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Paraphrasing text from  “Reuters" all rights reserved by the original author.