FRANKFURT: A meeting between bankers from Commerzbank and UniCredit will be held virtually on Friday morning, a person with direct knowledge of the matter told Reuters, as the German bank kicks off talks with its Italian suitor.

Italy’s no 2 bank is pressing for a tie-up after snapping up a stake earlier this month while Germany’s no 2 bank is honing its defence as it pursues a strategy of independence.

It was not immediately clear which executives from the banks would be present, although insiders have said UniCredit’s chief Andrea Orcel would not be among them.

Commerzbank’s designated CEO Bettina Orlopp told a financial conference in London on Thursday that the two banks would meet to “exchange views” now that UniCredit was a shareholder.

UniCredit caught Commerzbank off guard when it scooped up a 9% stake, saying it planned to buy more shares if it got regulatory clearance while pressing for discussions to explore a tie-up.

Shares of Commerzbank traded 0.2% lower in Frankfurt, after a nearly 7% gain on Thursday, while UniCredit was 1% lower after a nearly 5% gain on Thursday.

Commerzbank’s shares have risen around 30% since UniCredit disclosed its stake.

Commerzbank boards confirm independent strategy as UniCredit seeks possible tie-up

UniCredit’s move is the most ambitious attempt yet at a pan-European bank merger but it faces considerable political hurdles in Germany ahead of national elections.

Commerzbank’s management, employees and the nation’s chancellor, Olaf Scholz, have all voiced opposition to a potential takeover, but at least one big investor and some business leaders favour talks.

Orcel, who has long held an interest in a tie-up with Commerzbank, this week said that it would be the best outcome.

Orlopp on Thursday said the bank was open-minded but that the speed of synergies and risks to executing any deal needed evaluation.

“Sometimes it makes sense, sometimes it doesn’t make sense, and that is something we need to find out jointly,” Orlopp said.