Commerzbank is in the sights of UniCredit's Andrea Orcel as he plays a bold hand.

• UniCredit has acquired a 9% stake in Frankfurt-based Commerzbank, sparking speculation about a possible full takeover of Commerzbank by UniCredit.
• Commerzbank may face obstacles before allowing UniCredit to increase its stake beyond 9.9%, as requested in a filing.
• In a Bloomberg TV interview on Thursday, Orcel stated that all the options were on the table.

This week, Italian lender UniCredit's CEO, Andrea Orcel, unveiled a 9% stake in a company and hinted at a possible takeover bid for a German rival.

UniCredit may face obstacles before increasing its stake in Commerzbank, as announced in a request to potentially exceed 9.9% ownership if necessary. On Wednesday, Commerzbank shares rose after news of UniCredit's position was disclosed, and gains continued on Thursday due to speculation of an imminent takeover.

"According to Orcel, all options are on the table, and it is simple to engage with stakeholders to determine if a combination is possible. If not, it may be the basis for sponsoring or propelling further Commerzbank transformation, which would deliver value for shareholders."

UniCredit's recently acquired stake was partially bought from Commerzbank's largest shareholder, the German government, which aims to gradually divest its position after injecting 18.2 billion euros ($20.05 billion) to save the bank during the 2008 financial crisis. The authorities, retaining a 12% shareholding, announced last week that about 13.15 billion euros of the rescue funds had been repaid to date.

The focus is now on whether UniCredit will take the next step when the German government decides to sell its shares in the market.

""We would be interested in buying in the open market or doing nothing, but we need authorization first to have that flexibility," Orcel said Thursday."

Orcel's acquisition of Commerzbank would align with his broader expansion strategy and make Germany's second-largest bank, with a market share of approximately 8% of customer loans.

"The CEO of UniCredit wants to maintain its pan-European identity, which is why expanding its presence in countries where it already operates is consistent with this objective."

Last year, UniCredit made a cross-border move by purchasing a nearly 9% stake of Alpha Bank from the state-owned Hellenic Financial Stability Fund. However, the bank has not made any further moves targeting the Greek bank.

Recently, Deutsche Bank CEO Christian Sewing stated that merger and acquisition activity was not a priority for the group, which cooled whispers that Germany's largest lender would take over Commerzbank following an abrupt collapse of initial talks in 2019.

The acquisition of Commerzbank by UniCredit would be a rare example of consolidation among Europe's major banks, but it may face regulatory obstacles and restrictions on large exposures.

According to David Benamou of Axiom Alternative Investments, Orcel is targeting Commerzbank at "probably one of the best moments he could have."

On Thursday, CNBC's Steve Sedgwick reported that Benamou considered the move financially excellent.

The stock building at Commerzbank is not yet fully priced into its "very low" valuation because the bank has not yet validated its August share buyback plan involving a first tranche of 600 million euros, or roughly 3.3% of its market capitalization as of Thursday.

The acquisition of Commerzbank by UniCredit would "significantly" decrease the likelihood of UniCredit pursuing domestic consolidation in Italy, where the bank had previously abandoned talks with Monte dei Paschi in 2021.

Berenberg warned that UniCredit may face opposition from political and trade unions regarding the acquisition, which could decrease the value extracted from the deal. Furthermore, as the merged entity would be larger and more complex, it may face increased capital requirements.

Commerzbank is trying to prevent a possible acquisition, as reported by Reuters, while Frank Werneke, the head of Verdi, urged the German government to maintain its stake in Commerzbank "indefinitely to prevent a takeover," according to a Google-translated statement.

— CNBC's Ganesh Rao contributed to this report.