Commerzbank workers reject UniCredit as it inches toward control

By Tom Sims

FRANKFURT, July 9 (Reuters) - Commerzbank workers on Thursday firmly rejected UniCredit's advances, maintaining their resistance to a tie-up as the Italian bank nears control of its German competitor.

German opposition to UniCredit's overtures has been widespread — from Commerzbank's headquarters to the chancellery in Berlin — and the pushback underscores the difficulty of merging large banks across the euro zone despite policymakers wanting more tie-ups to compete with bigger American rivals.

"One thing remains constant and transparent: Our position, that we neither want nor need UniCredit," a works council message circulated to employees on Thursday said.

The blunt statement comes a day after UniCredit disclosed it had secured 47.6% of the shares of Commerzbank, leaving the Italian bank just short of gaining control of the lender it has been trying to buy ‌since 2024.

"We reject this veiled, uncoordinated and hostile creeping approach," the message said.

UniCredit said on Wednesday it sought to "engage constructively with all relevant stakeholders".

Commerzbank CEO Bettina Orlopp, in a video message to employees on the bank's intranet, has urged calm.

"With the results of the takeover offer, we are now facing a situation that is new for all of us. But we will not let it unsettle us," Orlopp said according to a transcript of the message seen by Reuters.

Both banks have signalled a willingness to talk after several rounds of informal discussions petered out amid differences of opinion.

Commerzbank management has said that a combination of the banks could result in 11,000 job cuts, while the works council has projected 23,000 cuts.

UniCredit has signalled around 7,000 positions could be trimmed, many in central functions.

Commerzbank, which has around 38,000 full-time positions, has undertaken several rounds of major cuts over the past decade, including 3,000 jobs earlier this year and a 2021 deal to cut 10,000 jobs.

"We will continue to advocate vigorously for the preservation of an independent Commerzbank," the works council said in its letter on Thursday.

(Reporting by Tom Sims; Editing by Miranda Murray and Emelia Sithole-Matarise)