*

UniCredit has 28% stake in Commerzbank, ECB clearance to

own up

to 29.9%

*

Merger would be best outcome for all parties, UniCredit

CEO

Orcel says

*

Orcel calls for talks, says solution needs to be found in

any

case

By Tom Sims, Andreas Rinke, Valentina Za

FRANKFURT, July 2 (Reuters) - The CEO of UniCredit

renewed his push to merge the Italian bank with its

German rival Commerzbank, attempting to make his case

in a letter to Germany's Chancellor Friedrich Merz.

UniCredit last year acquired a large stake in the German lender

and has been calling for a full takeover, despite resistance

from Commerzbank management and the German government, which is

another top shareholder.

"As I have repeatedly said, I would like to sit around a table

and discuss this matter face-to-face," UniCredit Chief Executive

Officer Andrea Orcel wrote in the June 18 letter to Merz,

according to a copy seen by Reuters.

Sueddeutsche Zeitung first reported the existence and

content of the letter, which was also sent to German Finance

Minister Lars Klingbeil.

Both Merz and Klingbeil have voiced opposition to any tie-up of

the two European banks.

"It would create a new national banking champion for Germany -

an institution dedicated to supporting the revitalisation of the

German economy that is at the heart of the new government's

agenda," Orcel wrote, in reference to a possible merger.

"While we firmly believe a merger would be the optimal

eventual direction of travel, should this not be feasible, then

there is still a need for us to sit together to find a mutually

agreeable and positive solution that works for all parties," he

wrote.

The UniCredit CEO noted that German politicians would have

the final say on the location of the headquarters of a combined

bank. A merger would bring together Frankfurt-based Commerzbank

and UniCredit's German unit, Munich-based HVB.

"We fully recognise the sensitivities connected to this

issue ... the eventual location of a combined entity

headquarters would be at the discretion of the German government

and respective mayors," he said.

Orcel also said Commerzbank's branch network would be

protected and that local decision-making would remain for things

like loans.

"The principle of local, market-centric decision-making is

central to our culture and would continue to be guaranteed,"

Orcel wrote.

UniCredit wasn't immediately available for comment.

Commerzbank declined to comment.

Germany's finance ministry confirmed receipt of the letter.

Klingbeil wrote back to express his thanks and referred Orcel to

Commerzbank's management, it said.

In May, Commerzbank CEO Bettina Orlopp, who has been working on

keeping the bank independent, said "we don't need constant

interference from the outside".

(Additional reporting by Kirsti Knolle, Editing by Thomas

Seythal, Mark Porter and Paul Simao)