FRANKFURT: Commerzbank and UniCredit will hold an initial round of talks Friday as the Italian bank pursues a potential takeover, the German lender said, while vowing to bolster its "independent position". Italy's second-biggest bank snapped up a stake in Commerzbank this month, and then this week boosted its holding to around 21 percent, making it the largest shareholder - ahead of the German state. The moves have fuelled speculation that UniCredit aims to take over Commerzbank in a highly ambitious European banking merger, but the attempt has sparked resistance from German politicians and unions.

Commerzbank has vowed to block any takeover attempt and the German government has pledged its support, with Chancellor Olaf Scholz denouncing "unfriendly" acts. Commerzbank's chief financial officer Bettina Orlopp, who takes over as CEO next week after the current chief executive stepped aside early amid the takeover speculation, said talks between the banks' management would take place Friday. "We'll have a meeting and then we'll see," she said, citing "normal" talks with a major new investor. The bank also lifted its profit forecasts, saying it expects net profit to rise to over three billion euros ($3.3 billion) in 2027.

In terms of return on equity, that represents a forecast of more than 12 percent by 2027, up from a previous forecast of 11 percent. Last year the bank made a profit of 2.2 billion euros. By boosting its targets, Commerzbank hopes to make itself more attractive to its shareholders and lessen the chances that UniCredit's takeover push will succeed. "Commerzbank is continuously expanding its independent position as a strong pillar in the German banking market and a reliable partner to the domestic economy," said Jens Weidmann, chairman of Commerzbank's supervisory board.

Commerzbank's shares were up nearly six percent in Frankfurt at around 1100 GMT. UniCredit boss Andrea Orcel has said openly he sees "potential in a merger" with Commerzbank but has ruled out a hostile takeover bid. UniCredit already owns Germany's HypoVereinsbank. But the Milan-based lender's advances have raised hackles in Berlin, with accusations that the German government had been caught napping. UniCredit acquired 4.5 percent of its stake from the German government itself, which Berlin had built up during the global financial crisis of 2007-2008. The German government still holds a 12 percent stake but has said it does not plan to sell more shares for now.- AFP