FRANKFURT, Sept 23 Reuters Shares of Commerzbank traded 3.1 lower on Monday after the government said that it would retain its 12 stake in the German bank for now in a move that will likely keep any merger with Italy39;s UniCredit on hold.

Late on Friday, Germany39;s Finance Agency said the state will not sell any more shares in Commerzbank for the time being and the bank39;s strategy is geared towards independence, in the clearest sign yet that the government doesn39;t currently favour a takeover of the nation39;s No. 2 lender.

The bank39;s shares had gained around 24 since Sept. 11, the day that UnCredit announced it had ammassed a 9 stake in Commerzbank and expressed interest in a merger.

The announcement by the finance agency, an arm of the German finance ministry, means UniCredit was now unlikely to make a takeover offer soon, some analysts have said.

Reporting by Tom Sims and Paolo Laudani, Editing by Rachel More

Source Reuters