(Bloomberg) -- Commerzbank AG’s labor representatives are “bitterly determined” to prevent a merger with Italian rival UniCredit SpA, warning that two-thirds of the jobs at the German lender could be cut in a takeover.
“Berlin can prevent the deal,” Uwe Tschaege, the head of the lender’s works council, said in comments to Bloomberg. UniCredit Chief Executive Officer Andrea “Orcel has said that he only wants a friendly deal.”
Commerzbank, which is still part-owned by the government after a bailout in the financial crisis, is looking how to respond after UniCredit this month disclosed owning 9% of the German lender. The board of directors is speeding up the process to replace CEO Manfred Knof, who previously announced he won’t seek a new term, Bloomberg has reported.
The German government’s decision to offload about a quarter of its holding to UniCredit, meanwhile, is driving another wedge into Chancellor Olaf Scholz’s fractious ruling coalition. Officials working for Scholz, a labor-friendly Social Democrat, in the chancellery are insisting on opening an internal investigation, according to people familiar with the matter. Finance Minister Christian Lindner, from the pro-business Free Democrats, has defended the sale.
“We fear that two thirds of Commerzbank employees could be made redundant - similar to the situation at HVB,” UniCredit’s German unit, said Tschaege, who is also the deputy chairman of Commerzbank’s supervisory board. “Half of the customers could be lost.”
The works councils, which hasn’t been in contact with UniCredit about its intentions, will hold employee meetings in October and November to discuss the issue. It’s also seeking talks with politicians.
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