FRANKFURT, Sept 19 (Askume) – A German bank staff union on Thursday asked Commerzbank Berlin for support from Italian bank UniCredit (CRDI.MI).(CBKG.DE) and warned that if the deal went through, it would lead to mass unemployment.
The DBV union’s warning comes just days after the Italian bank announced it would buy a 9% stake in Commerzbank from the German government and the open market, with the bank’s leader saying he was keen to explore the possibility of a merger.
The German government still owns a 12% stake in Commerzbank and will play a key role in whether a deal can be reached.
The union said it had a “special responsibility” to preserve Berlin jobs and not to cash out its remaining stake in Commerzbank.
“Berlin still has the opportunity to pursue a solid industrial policy and retain thousands of jobs at Commerzbank – a smart investment in the future,” Commerzbank said in a statement.
German Finance Minister Christian Lindner, who manages the government’s stake in commercial banks, said on Thursday that the government does not want to continue investing in any bank permanently.
Government currently has no plans to sell commercial banks further, sources told AskumeThe government has been asked to retain its shares temporarily.
Commerzbank has more than 25,000 corporate customers, about a third of Germany’s foreign trade payments and more than 42,000 employees. It is an important pillar of the German economy and a European industrial engine.
Italy’s takeover interest prompted a reaction and embarrassed the German government, which sold the stake without realizing that UniCredit would take it over.
UniCredit’s attempt at a pan-European banking merger is the most ambitious to date, but it faces major political hurdles in Germany.
The talk of seizing power comes at a delicate moment. The coalition government, one of the most unpopular in recent history, is preparing for national elections next year.
