Germany criticizes UniCredit's 'unfriendly' moves on Commerzbank

BERLIN

Italian bank UniCredit's move to increase its stake in German lender Commerzbank, which further fueled speculation of a takeover bid, was "uncoordinated and unfriendly," the German government said.

UniCredit, Italy's second-largest bank, said on Dec. 18 that it had increased its stake in Commerzbank from 21 percent to around 28 percent.

"UniCredit is once again taking uncoordinated and unfriendly action," said deputy government spokesman Wolfgang Buechner.

"Unfriendly attacks and hostile takeovers are inappropriate in the banking sector," he told a regular press conference.

The Milan-based lender surprised markets and Berlin when it announced in September that it had built a significant stake in its German rival.

UniCredit has since built its exposure to Germany's second-largest bank through derivatives as it awaits regulatory approval to take control of the shares.

A large portion of UniCredit's shares were bought directly from the German government, which sold them off as it looked to unwind its position in Commerzbank.

Berlin still holds a 12-percent stake in the lender, the legacy of a government bailout during the 2008 global financial crisis.

"The federal government, as the largest current shareholder, continues to support Commerzbank in its strategy and independence," Buechner said.

Commerzbank is a "systemically important bank," whose fusion with another large financial entity would entail "considerable risks, including for employees," he said.