Italian government officials are growing frustrated at Germany’s opposition to a potential takeover of Commerzbank AG by Milan-based UniCredit Spa, threatening to disrupt the delicate diplomatic relations between Berlin and Rome.

Germany’s chancellor decried “unfriendly attacks” on banks after UniCredit moved to raise its stake in the lender.

Commerzbank’s management has warned the German government that a potential multibillion-euro merger with UniCredit is a threat to businesses that make up the backbone of Europes

UniCredit SpA Chief Executive Officer Andrea Orcel moved to more than double the lender’s stake in Commerzbank AG, in a dramatic development that’s likely to escalate tensions with the German government.

The Italian lender moved to boost its Commerzbank stake above 20%, shrugging off German opposition to a possible takeover.

German Chancellor Olaf Scholz issued a sharp warning to UniCredit to refrain from "unfriendly" acts Monday after the Italian bank revealed it had significantly increased its stake in Germany's Commerzbank.

Italian bank UniCredit (OTCPK:UNCFF) (OTCPK:UNCRY) said Monday it increased its stake in Commerzbank (OTCPK:CRZBF) (OTCPK:CRZBY) to around 21% through financial instruments and submitted an application to own up to 29.

If the deal wins approval, it will make the Italian bank Commerzbank's largest shareholder - to the dismay of the German government. View on euronews