Germany must oppose UniCredit takeover of Commerzbank, employees say
Updates with government statement in paragraph 7, bank responses in paragraph 8, background in paragraphs 9-12
By Tom Sims and Christian Kraemer
FRANKFURT, Sept 20 (Reuters) -Commerzbank CBKG.DE 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 CRDI.MI as workers fear massive job losses if a deal goes through.
The joint statement from the Commerzbank works council and the Verdi union marks the starkest opposition yet by employees of a possible tie-up between the 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 as well as on the open market - and its chief executive said he wanted 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.
The German government is "thoroughly analysing" the matter, a government spokesperson said in response to the employee and union demands.
UniCredit wasn't immediately available for comment and Commerzbank didn't immediately respond.
Commerzbank, with more than 25,000 business customers, almost a third of German foreign trade payments and more than 42,000 staff, is a linchpin of the German economy.
The Italian takeover interest has already prompted a backlash and is an embarrassment for the German government.
UniCredit's swoop is the most ambitious attempt yet at a pan-European bank merger, but it faces considerable political hurdles in Germany.
German Finance Minister Christian Lindner, whose ministry manages the Commerzbank holding, said on Thursday 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.
Additional reporting by Valentain Za; editing by Miranda Murray and David Evans
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
