Analysts have welcomed the move by UniCredit, particularly because a tie-up between the two banks might spur more M&A activity in Europe's banking sector.

Another person with direct knowledge of the matter said UniCredit’s “assault” on Commerzbank was perceived in Berlin as an “unfriendly act.” The person added it was “nonsensical” for UniCredit’s chief executive Andrea Orcel to argue the German government welcomed his bid.

Germany will not sell any more shares in Commerzbank for now and the bank's strategy is "geared towards independence," the country's Finance Agency said on Friday, in the clearest sign yet that the government doesn't currently favour a takeover of the nation's No.

The German government has decided not to sell any more shares in Commerzbank AG for the time being. “At its meeting on Sept. 20, the interministerial steering committee responsible for key decisions of the Financial Market Stabilisation Fund decided that the FMS will not,

Following an expression of interest in Germany's Commerzbank by Italy's UniCredit, the German government does not want to sell any more of its Commerzbank shares for the time being. The decision was made by the steering committee in Berlin,