FRANKFURT/MILAN, June 16 (Reuters) - Germany has officially rejected UniCredit's offer to buy Commerzbank, the country's finance agency said on Tuesday, citing a low price and concerns about what it called the Italian bank's aggressive approach.
UniCredit's initial offer period for Commerzbank shares is winding down, with both banks digging in their heels in the months-long battle for control of one of Germany's most important lenders.
The German government holds a 12% stake in Commerzbank acquired in the wake of the 2008 global financial crisis and has long objected to UniCredit's campaign for a tie-up.
"Accepting the offer was already not an option from a financial point of view, as it does not include an appropriate premium on the current share price of Commerzbank’s shares," the agency said.
It also said that it supported Commerzbank's independence, and noted that the bank played a critical role in financing medium-sized companies and was an integral player in Frankfurt, the nation's financial hub.
"Both must continue to be ensured in the future," it said.
Separately, Frankfurt prosecutors on Tuesday confirmed that they had begun a preliminary investigation into possible market manipulation related to the offer.
It follows a criminal complaint filed by Commerzbank's workers council that reached prosecutors on Sunday.
UniCredit said in a statement that it was aware of the matter and that the prosecutors' response was "in line with protocol when such complaints are filed".
Reporting by Tom Sims and Valentina Za, Editing by Friederike Heine and Tomasz Janowski
Source: Reuters