Italy’s UniCredit appears to have caught German authorities off guard with a potential multibillion euro merger of Frankfurt-based Commerzbank.

With an election due in a year, German politicians are wary of potential job losses among Commerzbank's 40,000 staff and the loss of control over a bank that is a key lender to the "Mittelstand", the

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.Most Read from BloombergUnlocking the Hidden Power of Zoning,

MILAN/FRANKFURT (Reuters) -German Chancellor Olaf Scholz slammed as "an unfriendly attack" UniCredit's move to become the biggest investor in rival Commerzbank with a potential 21% stake, marking growing hostility towards the Italian bank.

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.