Commerzbank shares jump 20% after UniCredit buys 4.5% stake from the German government

Commerzbank shares jumped on market open on Wednesday, after Italian bank UniCredit acquired a 4.5% stake in the Frankfurt-based lender from the German government.

Frankfurt-listed Commerzbank stock was up 20.31% at 12:54 p.m. London time.

The stake acquisition marks the first step in Berlin's exit from its position in the German lender. The German government said it had sold around 53.1 million shares — or a roughly 4.49% tranche out of its 16.49% total shareholding — in Commerzbank for roughly 702 million euros ($775 million) to UniCredit.

Even at a reduced 12% position, the German government said it remains Commerzbank's largest shareholder. Berlin has held its stake in the lender ever since injecting 18.2 billion euros to rescue Commerzbank during the 2008 financial crisis. Around 13.15 billion euros of that sum has been repaid to date, the government said last week.

"Commerzbank has shown that it is once again standing on its own two feet. With this the first partial sale of the investment will mark the completion of the successful stabilization of the investment Bank and thus the federal government's exit," said Eva Grunwald, managing director of the federal finance agency.

In a separate statement, UniCredit said it had taken a 9% stake in Commerzbank, confirming that half of this shareholding was acquired from the government.

"To maintain flexibility, UniCredit will submit regulatory filings for authorization to potentially exceed 9.9% of Commerzbank if and when necessary," UniCredit said. The bank's own Milan-listed stock was up nearly 0.5% at 12:55 p.m. in London.

"We have taken note of UniCredit's announcement this morning and its acquisition of an equity stake in Commerzbank," Commerzbank said later on Wednesday.