UniCredit’s attempt to acquire a stake in Commerzbank without prior discussion is a hostile act that does not befit either Europe or Germany, said German Chancellor Olaf Scholz.

“Unfriendly attacks and hostile takeovers are not a good thing for banks and that’s why the German government has clearly positioned itself in that direction,” Scholz said on the sidelines of a visit to New York.

Olaf Scholz’s comments sent Commerzbank shares down 5.9% as investors reassessed the chances of a full takeover. UniCredit closed down 3.3%.

Friedrich Merz, the leader of the opposition Christian Democrats, who many see as Germany’s next chancellor, described the Italian banking giant’s CEO Andrea Orcell’s tactics as “amateur” and the takeover a “disaster for the banking market of of Germany’, referring to HVB’s past.

UniCredit, which has up to 6.5 billion euros in capital it could use for takeovers, bought Bavarian bank HVB in 2005, whose business, though much smaller, is more profitable than Commerzbank’s after steep cuts staff over the years.

The ball is in the ECB’s court

“The ball is firmly in the ECB’s court. If they approve the increase, UniCredit will control enough to lead the game,” said academic and former ECB supervisor Ignazio Angeloni.

“UniCredit could also simply integrate HVB into Commerzbank and have a large stake in a German bank. It’s not ideal, we’re still a long way from a ‘European JPM’, but it’s a first step in the right direction for Europe,” he added.

European banks lag behind American banks in size and value, such as JP Morgan.

It is recalled that earlier today it became known that Unicredit increased its stake in Commerzbank to 21%, from the 9% it held, which makes it the largest shareholder in the German bank. At the same time, he submitted a request to obtain a percentage of up to 29.9%.

Berlin has been a shareholder in Commerzbank since the 2008 financial year, when it had to provide it with an €18.2 billion liquidity injection, and it still owns 12% of Commerzbank.

According to CNBC, German government officials, in their meeting on Friday, discussed the state’s participation in Commerzbank. They concluded that the bank “is stable and profitable” and its strategy is oriented towards independence. The federal government is leaning in this direction and will maintain its shareholding,” they said.