Germany denies report it is mulling law to protect banks from foreign takeovers
Recasts with German finance ministry denial
MILAN, Oct 20 (Reuters) -Germany's finance ministry on Sunday denied that the country was considering introducing a law to protect domestic banks from cross-border takeovers as Italy's UniCredit CRDI.MI seeks a merger with Germany's Commerzbank CBKG.DE.
Italian newspaper La Repubblica on Sunday cited a source close to the matter that the German government was considering a law preventing foreign lenders from buying 100% of any bank and requiring it remain listed in Germany.
"We deny that," a spokesperson for the German finance ministry said.
Berlin was taken aback by UniCredit's swoop to build a large stake in state-backed Commerzbank, a move the Italian bank says could lead to a merger.
Reporting by Sara Rossi and Klaus Lauer; additional writing by Tom Sims; editing by Gavin Jones, Christina Fincher and Hugh Lawson
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