Inside the UniCredit and Commerzbank Merger Tussle

Executives from UniCredit engaged in discussions with German officials regarding stakes in Commerzbank, according to a parliamentary document. While UniCredit aims for a pan-European merger, political and market challenges arise, with opposition from Commerzbank's management and government interactions raising scrutiny.

UniCredit executives held discussions with top German government officials before the acquisition of a part of the state's stake in Commerzbank, as revealed in a parliamentary document reviewed by Reuters.

The government documents the interactions, providing the most comprehensive account so far of communications prior to UniCredit's acquisition of a significant Commerzbank stake.

Despite the acquisition, UniCredit faces political challenges in pursing a merger, particularly as German elections loom. The resistance from Commerzbank's management highlights ongoing tensions.

(With inputs from agencies.)