UniCredit's Surprise Move: Inside the German Stake Talks

UniCredit engaged with German government officials prior to acquiring a stake in Commerzbank, as revealed by parliamentary documents. The move has sparked political concerns amid potential European bank merger ambitions. Meetings between top officials detailed a lively exchange, prompting questions over the stake sale process.

UniCredit executives held strategic discussions with senior German government officials, including members of the chancellery and finance ministry, in the lead-up to purchasing a significant portion of the state's holding in Commerzbank, according to documents obtained by Reuters. These meetings, which form the most detailed account of interactions before the Italian bank's unexpected acquisition, reveal the government's surprise at the move.

As UniCredit explores an ambitious pan-European bank merger, it faces substantial political challenges in Germany, especially with upcoming national elections. Notably, Florian Toncar, the state secretary overseeing the stake sale, communicated with Marion Hoellinger, UniCredit's German operations head, regarding announcements related to the sale on specific dates, as noted in the documents.

The documents also highlight connections between UniCredit Chairman Pier Carlo Padoan and German officials, including meetings with Joerg Kukies. German lawmaker Matthias Hauer criticized the government's handling of the sale, suggesting further investigation into the decision to sell the entire stake to UniCredit instead of multiple investors. Both UniCredit and Germany's finance ministry declined immediate comment on the situation.

(With inputs from agencies.)