Commerzbank's Potential Merger with UniCredit Sparks Political Controversy

Commerzbank's CFO Bettina Orlopp is set to lead merger talks with UniCredit, which recently acquired a 9% stake in the German bank. This potential merger faces political and economic hurdles in Germany, especially ahead of national elections. Management at Commerzbank remains opposed to the takeover, highlighting concerns about job cuts and economic risks.

Commerzbank's CFO Bettina Orlopp is preparing to spearhead negotiations with UniCredit as the German bank's supervisory board convenes next week, sources informed. The Italian bank, having acquired a 9% stake in Commerzbank, is keen on a merger. These pivotal talks are set to commence next week.

UniCredit's aggressive move represents the most ambitious attempt at a pan-European bank merger to date, though significant political challenges loom in Germany, particularly from trade unions fearing job losses. Despite fulfilling shareholder obligations by entering discussions, Commerzbank's management remains resistant to a takeover by the Italian lender, according to insider sources.

The decision to place Orlopp at the forefront of these discussions may be finalized as early as Tuesday during a strategic meeting of Commerzbank's supervisory board near Frankfurt. This gathering will also address the bank's broader strategy and reactions to UniCredit's advances. However, Commerzbank has opted to remain silent on the matter for now.

(With inputs from agencies.)