COMMERZBANK’S management has warned the German government that a potential multibillion euro merger with Italy’s second-largest bank UniCredit is a threat to businesses that make up the backbone of Europe’s biggest economy,

Commerzbank's management has warned the German government that a potential multibillion euro merger with Italy's second-largest bank UniCredit is a threat to businesses that make up the backbone of Europe's biggest economy, the Financial Times reported on Monday.

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 government said it won’t offload any additional shares in the bank following the sale to UniCredit for €702 million. The move marks an U-turn for the government.

The German government won’t sell any more shares in Commerzbank AG for now, the strongest signal yet that Berlin is opposed to any UniCredit SpA bid.Most Read from BloombergAOC Proposes $30 Billion Social Housing AuthorityThe Moonshot Plan to Eliminate Deaths on America’s RoadsCalifornia’s Anti-Speeding Bill Can Be a Traffic Safety BreakthroughNew York City’s Transit System Plans $65.

UniCredit SpA built a 9% stake in Commerzbank AG and plans to enter into talks with the lender, raising the possibility of a takeover that could reshape Europe’s banking landscape.

UniCredit's opening gambit in a takeover play for Commerzbank has rekindled a debate about the future of German banking, prompting Berlin to pause selling shares in the lender and turning the spotlight on Deutsche Bank as a possible rival suitor.