UniCredit's hostile takeover of Commerzbank could result in significant job losses, warns board member.

• Stefan Wittmann, a member of Commerzbank's supervisory board, stated to Annette Weisbach of CNBC that "we certainly hope to avoid" a hostile takeover by the Italian bank.
• Commerzbank, Germany's second-largest lender, has the potential to generate significant value, but UniCredit believes that additional steps are necessary to fully realize this potential.

If Commerzbank successfully carries out a hostile takeover, two-thirds of the jobs at the German lender could disappear, a Commerzbank supervisory board member warned on Tuesday.

Stefan Wittmann, a senior official at German trade union Verdi and also a member of Commerzbank's board, stated to CNBC's Annette Weisbach that the bank hopes to avoid a hostile takeover by the Italian bank. Wittmann explained that the board had requested the German government to conduct an internal review of the possible takeover, which he believes will provide the bank with a six-month period to assess the situation.

If a hostile takeover is inevitable, we believe that two-thirds of jobs will be lost, and there will be another major reduction in branches, he stated, according to a translation.

He stated that UniCredit does not want all Commerzbank customers, but rather focuses on the wealthy ones.

Commerzbank's largest shareholder, Berlin, is likely to be a crucial player in any potential merger between the banks.

Wittmann stated that we are concerned with our economic and industrial responsibility, and as far as the workforce is concerned, trade unions would always lose out in a merger, regardless of the time. The bank has not yet responded to a request for comment on Wittmann's statements.

On Monday, UniCredit announced that it had increased its stake in the German lender to approximately 21% and submitted a request to increase its holding to up to 29.9%, indicating a possible takeover bid. Earlier this month, the Italian bank acquired a 9% stake in Commerzbank, with half of this shareholding coming from the German government.

Commerzbank, Germany's second-largest lender, has the potential to generate significant value, but UniCredit believes that additional steps are necessary to fully realize this potential.

The German Chancellor Olaf Scholz condemned UniCredit's move on Monday, stating that "unfriendly attacks and hostile takeovers are not beneficial for banks," as reported by Reuters.

'Very tense'

This week, Commerzbank's supervisory board will discuss UniCredit's stake, according to sources who requested anonymity.

UniCredit's announcement on Monday caught the bank off guard, resulting in a tense mood within the company, according to Wittmann.

Wittmann stated that on Friday, UniCredit CEO Andrea Orcel expressed his desire for a friendly takeover with the agreement of all stakeholders and politicians. However, yesterday, we were shocked by his hostile takeover attempt, which does not align with his previous statement.

The board member highlighted two key reasons to view a potential merger with caution: the absence of a banking union in Europe and UniCredit's recent reliance on Italian government bonds.

UniCredit's ability to finance Commerzbank's industry may be affected by geopolitical tensions or "upheavals," which were questioned by him.

The European Commission unveiled plans for a banking union in the aftermath of the 2008 financial crisis, with the aim of enhancing the oversight and control of banks throughout the region.

In a recent report, Mario Draghi, an economist and former European Central Bank Governor, highlighted the regulatory obstacles that limit banks' ability to lend in Europe. He also pointed out that the incomplete banking union has a significant impact on the competitiveness of the region's banks.

Wittmann stated that we have consistently advocated for mergers at the European level, but only when the banking union is established. Our second criticism is that we must establish the rules and safeguards first before proceeding, so that we can proceed with caution once we have a clear understanding of the playing field.