September 23, 2024 07:45 GMT
FINANCIALS: Commerzbank Equity Moves Lower As German Government Halts Share
FINANCIALS
Baa2[P]/BBB EUR Spreads 1-2bp tighter
Baa3/BBB-/BBB- EUR Spreads Mixed And Muted
- The German government's Financial Market Stabilisation Fund (FMS) will not sell any additional shares in Commerzbank following a partial sale in September 2024.
- Decision reflects support for Commerzbank’s strategy focused on independence with the government to maintain its shareholding until further notice including any sales related to buybacks.
- Commerzbank equity lower on the opposition to any takeover by Unicredit who purchased a 4.5% stake from the government this month and disclosed a 9% holding with the German government retaining a 12% holding.
- BBG news has noted sources indicating that the lack of transparency around UniCredit’s approach has irked German officials.
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