Commerzbank AG’s executive board is reviewing its defense strategy as it prepares for a potential takeover approach by UniCredit SpA.
The German bank, which was surprised by UniCredit’s disclosure of a 9% stake, is taking the precautionary move ahead of its engagement with its Italian rival, according to people familiar with the matter.
Labor representatives are expected to make a concerted effort to build political backing for a rejection of the approach, the people said, asking not to be identified discussing private matters.
Goldman Sachs Group Inc. is acting as Commerzbank’s defense adviser, a person familiar with the matter said. A spokesperson for Commerzbank declined to comment.
The moves underscore the spotlight Commerzbank now finds itself under even though regulatory and political roadblocks mean big banking mergers remain difficult to pull off in Europe. UniCredit Chief Executive Officer Andrea Orcel has a background in dealmaking, and has repeatedly said UniCredit wants to be the “Bank for Europe.”
Commerzbank has long been seen as a good fit for UniCredit given its size in Germany and its operations in Poland.
(Adds defense adviser in fourth paragraph.)
