UniCredit Seeks Commerzbank Leadership Removal Amid Takeover Talks

UniCredit CEO Andrea Orcel is seeking the removal of Commerzbank CEO Bettina Orlopp and Chairman Jens Weidmann as the Italian lender advances its takeover of the German bank. UniCredit has acquired nearly 50% of Commerzbank, a move intended to create a European banking entity with over 1.3 trillion euros in assets to better compete with U.S. rivals.

Lars Klingbeil, the German Finance Minister and Vice Chancellor, met with Orcel in Berlin on Monday to secure guarantees for the bank's future. While Klingbeil described the meeting as constructive, UniCredit opposes the German government's demand to retain two seats on Commerzbank's supervisory board, a right established during the 2009 financial crisis.

Berlin continues to demand that Commerzbank remain a listed company headquartered in Frankfurt and maintain its focus on financing small- and medium-sized businesses. Commerzbank leadership previously attempted to maintain independence through job cuts and higher financial targets, but CEO Bettina Orlopp called for constructive talks in late July as UniCredit's stake grew. The German government currently holds a 12% stake in the bank.