Commerzbank to buy back own shares for €1.2 billion

FRANKFURT, Sept 3 (Reuters) - Commerzbank, the German lender facing a takeover approach by UniCredit, said on Thursday it would launch a new share buyback programme of up to €1.2 billion ($1.39 billion) to boost the return for shareholders.

Commerzbank, valued at about €44 billion in total on the stock market, said the share buyback would begin Friday and run until  February 10, 2027, at the latest.

“With this next share buyback, we continue to consistently execute our attractive capital return policy,” said CEO Bettina Orlopp.

The acquired shares will be cancelled, as was the case in two previous share buyback programmes, the lender added.

Resistance by the bank and by the German government to a takeover has weakened since the Italian lender in July reached a stake of nearly 50%, which is sufficient to sway shareholder resolutions, including naming board members.

German Finance Minister Lars Klingbeil plans to meet UniCredit CEO Andrea Orcel, sources told Reuters last month, in the clearest sign yet that Berlin will engage directly with the Italian bank over the takeover attempt.

(Reporting by Ludwig BurgerEditing by Linda Pasquini)