'Potential for chaos', German union warns on Commerzbank and UniCredit

By Tom Sims

FRANKFURT, July 10 (Reuters) - A German bank labour union on Friday circulated a letter voicing stark criticism of UniCredit's move to take over Commerzbank, saying "the potential for chaos is growing."

The harsh rhetoric follows the Italian bank's disclosure this week that it was nearing control of its German competitor despite strong resistance in Germany, from the government to the bank's management.

"There is no longer any common ground for discussion," said the two-page letter from the DBV banking union.

The communication echoes a message on Thursday to staff by Commerzbank's workers council that firmly rejected UniCredit's advances.

"A premature merger could turn out to be a ticking time bomb for Germany and Europe," said the note on DBV letterhead and authored by two Commerzbank works council officials, one of whom sits on DBV's board.

UniCredit said on Wednesday it sought to "engage constructively with all relevant stakeholders," which would include the bank's employees.

(Reporting by Tom Sims, Editing by Linda Pasquini)