Germany's Commerzbank 'convinced' of value in deal with Italy's UniCredit

By Tom Sims and Philipp Krach

FRANKFURT, Nov 5 (Reuters) - Germany's Commerzbank, nearing a takeover by Italy's UniCredit, said on Thursday that it was "convinced" a deal between the two banks could create value, in a markedly more bullish stance on a potential tie-up.

Commerzbank's CEO made the statement as the lender reported a 45% increase in profit for the third quarter, completing what it called its best nine months in history.

"We are convinced that together with UniCredit, we can create value by consistently leveraging the strengths of both banks,” said CEO Bettina Orlopp.

The bank said it expected UniCredit's takeover offer to be completed "in the coming months" and said in an investor presentation that it saw "tangible cost and revenue levers".

Commerzbank, after months of resisting any takeover, is now talking to UniCredit about a deal between Italy's and Germany's No. 2 banks.

Commerzbank softened its stance over the summer, with Orlopp declaring a tie-up with UniCredit could create value for both sides. The shift in tone came weeks after UniCredit disclosed it controlled a nearly 48% stake in the bank, the subject of its €45 billion hostile approach.

Since then, the ECB has given a green light to a deal, clearing a key regulatory hurdle.

"Shareholders benefit from our delivery and additional potential within UniCredit Group," Commerzbank said on Thursday.

But tensions have remained. UniCredit CEO Andrea Orcel does not want Orlopp to remain as Commerzbank CEO and is opposed to Berlin keeping two supervisory board seats, a demand by the German government, which still retains a 13.3% stake in Commerzbank it acquired through a bailout during the global financial crisis.

Commerzbank staff, weary from multiple rounds of job cuts through restructuring, worry about the loss of jobs.

"What is still missing is a fair price, fair consideration of the interests of all parties involved, as well as a plan for credible synergies and a viable and meaningful integration for Commerzbank," Alexander Michaut, an official with the DBV labour union, and member of Commerzbank's works council, wrote in a flyer to union members.

UniCredit meanwhile has sought to allay a major concern among German executives that UniCredit could turn its back on corporate Germany in the event of a takeover.

Commerzbank is the latest European bank to report quarterly results. A number of banks have beaten profit forecasts, including its top German competitor Deutsche Bank.

Net profit of €859 million ($967.32 million) in the quarter compares with a profit of €591 million a year earlier. Analysts had on average expected profit of €864 million, according to a consensus forecast published by Commerzbank.

The bank said that it trimmed its forecast for net interest income this year to €8.5 billion from a previous forecast of €8.6 billion due to intense competition for deposits. Shares in the bank were down 2.6%, lagging a 1.4% rise in European banking stocks.

($1 = 0.8880 euros)

(Reporting by Tom Sims and Philipp KrachEditing by Linda Pasquini, Neil Fullick and Tomasz Janowski)