(Reuters) - Germany, in an unexpected move, will not take part in Commerzbank (ETR:CBKG)'s share buy-back programme and as a result increase its stake in the lender to 16.5%, business daily Handelsblatt reported on Wednesday citing financial sources.
"The federal government is not participating in Commerzbank's ongoing share buy-back programme," a spokesperson for the Finance Agency which manages state investments, told Reuters when asked for comment.
Commerzbank plans to buy back up to 600 million euros ($642.54 million) in shares this year in addition to last year's 122 million euros. The government currently holds 15.6% in Commerzbank, according to the Finance Agency's website.
The reported move would come as a surprise, said Handelsblatt. Many in the Commerzbank management had expected the government to sell shares under the programme, thus preventing a further increase in the state's stake.
Germany had to overturn its entire budget planning following a Constitutional Court decision last year and plans to raise several billion euros by selling company stakes.
Germany's stake in Commerzbank dates back to the 2008 global financial crisis and is still loss-making for the government.
Commerzbank was not immediately available for comment.
($1 = 0.9338 euros)