- UniCredit's CEO has wanted to explore tie-up with Commerzbank
- Deal would be ambitious attempt at cross-border consolidation
- Opposition to a deal is fierce in Germany
FRANKFURT, Sept 24 (Reuters) - Bettina Orlopp will take over as chief executive officer of Germany's Commerzbank in the near future, making her one of the country's highest-profile bankers during a tumultuous time for its No. 2 lender.
The development announced late on Tuesday comes as the bank fends off advances from Italian bank UniCredit, which has acquired a sizeable stake in Commerzbank and wants to explore a takeover.
UniCredit's swoop is the most ambitious yet at a pan-European bank merger, but it faces considerable political hurdles in Germany. The bank's management, employees and the nation's chancellor, Olaf Scholz, have voiced opposition to a potential takeover.
Commerzbank, with more than 25,000 business customers, almost a third of German foreign trade payments and more than 42,000 staff, is a linchpin of the German economy.
"While we have a strategy that is effective, significant tasks lie ahead," Orlopp said.
Orlopp, currently chief financial officer, will take over from Manfred Knof, who announced this month he would step down as CEO at the end of 2025.
His announcement came hours before UniCredit revealed it was building a stake in Commerzbank, raising questions about whether Knof was best placed to lead talks on any tie-up.
The decision to make Orlopp the new chief executive so swiftly is positive, said Andreas Thomae, a corporate governance expert at Deka, a large investor in the bank. He called her an ideal candidate and assertive.
Orlopp, who had also served as Commerzbank's deputy CEO, last week sought to inject calm and said the government should hold on to its remaining 12% stake in Commerzbank after UniCredit began purchasing shares.
"We have all been very surprised by the process," Orlopp told journalists in Berlin. "That's why the most important thing now is simply to sort it out calmly, to think about what's on the table now and how to deal with it."
Orlopp assumed her current role in 2020 during another trying period for the bank, when the U.S. investor Cerberus, a major shareholder at the time, revolted and pressed for changes in the bank's strategy and management.
The CEO decision came amid a two-day meeting of the bank's supervisory and management boards outside Frankfurt.
The bank said its supervisory board had conducted a search both internally and externally but in the end chose Orlopp unanimously and gave her a five year contract.
A search is now on for a new finance chief but Orlopp will continue in the role for the time being.
Knof joined Commerzbank in 2021 and cut thousands of jobs and closed hundreds of branches to restore the bank's to profit.
Orlopp has been with Commerzbank since 2014 and on the board since 2017. She was with McKinsey for 19 years.
Reporting by Tom Sims; Editing by Chris Steitz, Tomasz Janowski, Emelia Sithole-Matarise and David Gregorio
Source: Reuters