Italian banking giant UniCredit was again criticized on Thursday for its aggressive pursuit of Commerzbank, as German Chancellor Friedrich Merz said the approach "is how trust is destroyed."
The Milan-based UniCredit formally launched its hostile takeover bid for Commerzbank on Tuesday after months of manoeuvring and fierce resistance from the German side.
Italy's second-largest bank is already the leading shareholder in Commerzbank with a stake of 25%. The German government holds a roughly 12% stake.
"That is no way to treat institutions such as a German bank, Commerzbank," Merz said in a speech to business leaders in Berlin.
"That is how trust is destroyed, not built."
In his comments on Thursday, Merz sought to reconcile his government's vehement opposition to Unicredit's takeover bid with Berlin's broader support for greater integration of financial markets across the European Union.
"Yes, we need large banks in Europe for complex financing, for IPOs, for support. Investment hubs worldwide also need large banks. But that doesn't mean that every kind of takeover is welcome without restriction," Merz said.
"We firmly reject hostile and aggressive approaches."
UniCredit has tried to woo Commerzbank shareholders with promises of higher returns by narrowing its focus to the German market to spur faster growth.
The takeover bid is worth roughly 35 billion euros ($41 billion) based on UniCredit's current share value.
But Commerzbank has accused its Italian rival of "misleading characterisations" in the fight.
Commerzbank executives contend the Unicredit bid undervalues the bank, and described a strategy outline from Unicredit last month as "a speculative attempt to dismantle Commerzbank's successful business model."
