Commerzbank boss ready for 'constructive' talks with UniCredit

Commerzbank chief executive Bettina Orlopp said she is ready to hold "constructive" talks with the firm's largest shareholder, Italy's UniCredit, as the Milan-based bank makes an aggressive bid to fully acquire its German rival.

In an interview distributed internally to staff and seen by dpa, Orlopp acknowledged UniCredit's leadership position after it recently secured access to nearly half of Commerzbank's shares.

"A constructive dialogue between our institutions is needed to find a value-creating path forward. This requires a shared understanding of the business model and the involvement of all stakeholders," said the head of Germany's second-largest private bank.

She said Commerzbank enters the cross-border takeover talks from a position of strength and with broad backing from its supervisory board, the German government and employee representatives.

Orlopp said the two banks would meet over the coming weeks and months to determine "step by step" how to proceed.

Orlopp stressed that even if UniCredit were to secure a majority stake in Commerzbank, it would not be able to decide on major structural measures unilaterally.

UniCredit has said it expects to take control of Commerzbank once it receives approval from the European Central Bank, which the Italian bank believes could come as early as the fourth quarter of this year.

UniCredit increased its stake through a voluntary takeover offer that closed in early July, acquiring an additional roughly 17.6% of Commerzbank shares. Combined with its existing 26.77% holding, the bank now controls about 44.37% of the German lender.

The Italian bank also currently holds options to acquire a further 3.22% of Commerzbank shares, potentially increasing its stake to 47.59%.

Andrea Orcel, UniCredit's chief executive, says combining the lenders would create a European banking heavyweight. He has criticized Commerzbank's long-term prospects and argues the Frankfurt-based bank would be capable of creating more value for shareholders under UniCredit.