FRANKFURT (Reuters) -Commerzbank employees and a prominent labour union on Friday called on the German government to oppose a takeover of the German lender by Italy’s UniCredit as workers fear massive job losses if a deal goes through.
The joint statement from the Commerzbank (ETR:CBKG) works council and the Verdi union marks the starkest opposition yet by employees of a possible tie-up between the banks.
The two groups said they were calling on the government “to work together with employees for a strong, independent Commerzbank”.
The appeal comes days after the Italian bank announced it had bought a 9% stake in Commerzbank – from the German government as well as on the open market – and its chief executive said he wanted to explore a merger.
The German government, which still owns a 12% stake in Commerzbank, will play a key role in whether any deal can take place.
“We call on the German government not to make any hasty decisions regarding the sale of its shares,” said Uwe Tschaege, the chairman of Commerzbank’s works council.
The German government is “thoroughly analysing” the matter, a government spokesperson said in response to the employee and union demands.
UniCredit wasn’t immediately available for comment and Commerzbank didn’t immediately respond.
Commerzbank, with more than 25,000 business customers, almost a third of German foreign trade payments and more than 42,000 staff, is a linchpin of the German economy.
The Italian takeover interest has already prompted a backlash and is an embarrassment for the German government.
UniCredit’s swoop is the most ambitious attempt yet at a pan-European bank merger, but it faces considerable political hurdles in Germany.
German Finance Minister Christian Lindner, whose ministry manages the Commerzbank holding, said on Thursday the government does not want to stay permanently invested in a bank.
But the government does not currently plan further sales, sources have told Reuters, and Commerzbank has also asked the government to retain its stake for now.
Source: Economy - investing.com
