Commerzbank merger talk back as Germany ponders sales - report

Commerzbank was in focus on Monday on speculation a potential merger with Deutsche Bank could be on the table as the German government looks to offload its 15% holding.

An attempt to merge fell through five years ago, but now the Berlin is reportedly looking for ways to raise cash.

Finance Minister Christian Lindner is open to a disposal and ultimately would prefer the government exiting the stake, Reuters cited an unnamed source as saying.

A merger with Commerzbank would allow Deutsche Bank to diversify from volatile investment banking earnings, bolstering the lender's longer-term stability, another factor that could sway the German government, said the source, speaking on condition of anonymity.

Deutsche Bank, which has completed the majority of a multi-year restructuring plan, recently stepped up internal discussions on deals, including possible purchases of banks such as Commerzbank and ABN Amro, Bloomberg reported on Friday, without naming sources.

Deutsche Bank declined to comment.