Commerzbank stated it held talks with UniCredit about a potential takeover but rejected the Italian bank's €35bn offer, arguing it lacked sufficient upside for investors. The German lender's broadside follows UniCredit's public accusation that Commerzbank failed to engage in discussions. UniCredit, which owns 29% of Commerzbank, launched its bid last month, triggering regulatory scrutiny. However, Commerzbank's board and the German government oppose the deal, fearing it threatens the bank's independence and stability.

The €35bn offer represented a 4% premium at announcement, but Commerzbank contends it offers no meaningful improvement beyond its current standalone strategy. UniCredit's pursuit was driven by its stake exceeding 30%, triggering a mandatory offer under German law. Commerzbank countered that UniCredit showed 'no willingness' to offer a 'necessary adequate premium' to existing shareholders. The German bank argues it can deliver better returns independently, citing potential synergies UniCredit overlooks.

This rejection significantly raises the stakes in the standoff. Commerzbank's board, backed by Berlin, remains committed to its independent path, while UniCredit faces pressure to justify its costly bid to shareholders amid mounting regulatory and political hurdles. The standoff underscores deep divisions over the future of Germany's second-largest lender, with implications for European banking consolidation and investor confidence.