Germany to sell 17% stake in Commerzbank ‘in the next six months’
The German government is expected to divest its interest from Commerzbank, Germany's second biggest lender, possibly within the year. The government owns 17% of the bank, through Soffin, following the Eur 18 billion bailout during the European crisis.
According to German magazine Wirtschaftswoche, the sale is expected to be completed in the next six months.
Only last July 16, Reuters reported that Germany may sell its stakes in September following the national elections.
Three buyers are interested to scoop up the government's share, including France's BNP Paribas, Switzerland's UBS and Spain's Santander. In the case of BNP, the lender has stated years ago that it's looking at investing into Commerzbank. However, the two other names only surfaced recently.
One hindrance for the sale is the very low yield of the Commerzbank. As of Friday, shares closed at Eur 6.51 which is way below the projected Eur 26 in order for the state to break even.