Commerzbank Battles UniCredit's Surprise Takeover Bid

Commerzbank's management has been strategizing on defending its independence following an unannounced 9% stake acquisition by UniCredit. Although Commerzbank will negotiate with UniCredit as obligated, the German lender aims to remain independent. The move has sparked concerns among trade unionists and officials about potential job losses and increased competition.

Commerzbank's management has been strategizing on how to maintain its independence, following a surprise 9% stake acquisition by UniCredit, a person familiar with the discussions revealed on Wednesday. While Commerzbank is obligated to engage in discussions with UniCredit, the German bank is keen to stick to its standalone strategy, two anonymous sources have indicated.

After UniCredit CEO Andrea Orcel's unexpected move, Commerzbank hastily called a board meeting. The acquisition could eclipse Commerzbank, which plays a crucial role in financing Germany's medium-sized companies. Berlin, still holding a 12% stake after its financial crisis rescue, is expected to pause further share sales to assess the new situation.

Trade unionists fear significant job losses from a potential merger, and the chairman of German Verdi labor union, Frank Werneke, has urged the government to halt any share sales to prevent a takeover. Meanwhile, speculation about consolidation in Europe's banking industry has been reignited.

(With inputs from agencies.)