German Finance Minister Christian Lindner said his government decided to suspend sales of Commerzbank AG shares because UniCredit SpA’s surprise move on the lender had unnerved investors.

Italy's UniCredit stunned markets by clandestinely raising its stake in Germany's second-largest lender to 21%. As Commerzbank's management now tries to fend off a possible takeover, the government stands by its side.

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

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.

UniCredit is "doing well" to act within the European Union's internal market, Italian Foreign Minister Antonio Tajani told the Class CNBC network on Monday, commenting on the Milan-based bank interest for Germany's Commerzbank.

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

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