The lender plans to lay off around 9% of its workforce in a bid to boost returns and convince investors of its standalone prospects.

Germany's Commerzbank is preparing staff cuts and revamped financial targets in its efforts to fend off tie-up advances by Italy's UniCredit , multiple people with direct knowledge of the plans told Reuters.

The battle for Commerzbank, pitting one of Italy’s biggest banks against the German establishment, has become a test case of the country’s ability to fend off foreign suitors and prevent its financial centre from losing one of its few remaining big commercial banks.