Appreciative as it is for the €21 German taxpayers threw it, Commerzbank has had quite enough of living under the government's thumb. So it's going to finish paying back those taxpayer loans by conveniently diluting its shares such that the German government can't tell it what to do anymore.
Unfortunately for non-sovereign Commerz shareholders, their holdings will be diluted as well.
Commerzbank, Germany’s second-largest bank after Deutsche Bank, said it would raise 2.5 billion euros ($3.3 billion) by selling new shares to existing shareholders. The issuance of new shares will reduce the German government’s stake in the bank to less than 20 percent, from 25 percent. As a result, the government would no longer have the right to veto management decisions….
Shareholders were disappointed, however, because the new shares would dilute the value of existing equity. Commerzbank shares fell more than 9 percent in Frankfurt trading on a day when German stock prices were otherwise flat.
Commerzbank to Raise Capital and Repay Taxpayer Money [DealBook]
Commerzbank Seeks $3.3 Billion in Capital Increase [Bloomberg via BW]