Now that Commerzbank has made the move to swallow up ailing Dresdner Bank, what happens next? If you believe German investors, nothing good. Commerzbank's share price dropped by 10 percent in Monday trading. Many have doubts whether Commerzbank is up to the task of successfully integrating its ailing rival and generating the promised synergies in what remains a difficult market environment. But the potential reward is worth the risk, commentators say: a new national player , well-equipped to catering for the small- and medium-sized businesses that make up the backbone of the German economy, Europe's largest.

Commerzbank Chief Executive Martin Blessing, 45, has avoided making his first mistake by making clear that Commerzbank's management will be calling the shots in the merged bank. Commentators say that's a wise move because it means there will be none of the awkward power-sharing pretence that has obstructed other major takeovers in the past. The venerable brand Dresdner Bank is to disappear and the name of the new bank has been decided: Commerzbank.

Center-left Süddeutsche Zeitung writes:

"Neither side has emerged as the big winner. (Dresdner Bank's former owner) Allianz is getting far less that it paid for Dresdner and has to concede that its excursion into banking was a flop. And Commerzbank apparently lacked the funds to purchase the whole of Dresdner Bank itself. The stockmarket punished Commerzbank CEO Martin Blessing for the risky coup on Monday -- the share price dropped significantly. And the staff of the two banks? They don't know what's going to happen now."

Left-wing Berliner Zeitung writes:

"The stockmarket has passed judgment on the takeover of Dresdner Bank by Commerzbank. Its verdict is that Commerzbank has bitten off more than it can chew. Politicians can talk as much as they like about the strategic advantages for Germany as a banking center, but the capital market is only interested in whether more money can be made. But in the long term the merger is probably the right move, and a profitable one. It may well be however that Commerzbank will spend many years preoccupied with integrating Dresdner, and that this huge acquisition will cause it major headaches. Those who believe that the creation of a new major German bank will be a success story will need imagination -- and definitely a lot of patience."

Conservative Frankfurter Allgemeine Zeitung writes:

"The stockmarket isn't delighted. The steep drop in Commerzbank's share price on Monday wasn't unexpected. The management had predicted it. But the Commerzbank management's accurate predictions don't change the message the stock market is sending: The takeover of Dresdner Bank is a Herculean task for Commerzbank, whose chief executive Martin Blessing was unable to allay the stockmarkets' misgivings at the first news conference on Monday."

"There's no doubt that the takeover makes sense. The creation of a second major bank is good news for the financial center and for German companies."

"But the stock market is worried that Commerzbank is taking on too much. The two-stage takeover and its other details prove that Commerzbank is being stretched to its limits. Every share price decline will make the capital hike needed to finance the acquisition more difficult. In addition, the takeover comes at a difficult time. The financial market crisis isn't over and could put further pressure on banks' balance sheets in the coming months."

"There is also reason to be skeptical in light of the experience of recent years, as more than half all major corporate mergers have failed to live up to expectations. But it would be wrong to talk down the takeover of Dresdner Bank at this early stage. Commerzbank has bravely seized an historic chance. Blessing and his team must now show what they're capable of."

Conservative Die Welt writes:

"Allianz is earning the quick profit from this deal while Commerzbank must hope that its tie-up with Dresdner Bank will be a success story in the long term. The chances of that happening are pretty good. Soon Commerzbank will be a key player in German retail banking and in the market for small- and medium-sized businesses. But the merger of two major banks also leads to a bundling of risks, especially in the corporate banking segment. The restructuring of the investment bank Dresdner Kleinwort will also be a major headache. From today, many of its 3,500 staff will have said their mental farewells."