Commerzbank's management and supervisory board have formally recommended that shareholders reject Unicredit's approximately €24 billion (equivalent to $27.91 billion) offer for the remaining shares, stating that the bid undervalues the bank and carries significant potential risks.

Earlier this month, Italy's Unicredit launched an all-stock takeover proposal for Commerzbank, further advancing the long-standing merger and acquisition strategy of its CEO. The CEO previously indicated that this offer aimed to break the deadlock between the two banks, while acknowledging that Unicredit is unlikely to secure a majority controlling stake in Commerzbank through this acquisition.

On Monday, Commerzbank stated that both its management and supervisory board unanimously agree that Unicredit's offer lacks sufficient premium and fails to reflect the bank's true value. The bank added that the acquirer has not presented a feasible merger strategy, and the acquisition plan itself harbors substantial uncertainties.

Commerzbank emphasized that both boards believe that pursuing the recently announced development strategy and maintaining independent operations would create greater corporate value compared to accepting this takeover.

As of now, Unicredit has not yet responded to this development.