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.

Commerzbank plans to lay off around 9% of its workforce in a bid to boost profitability and convince investors of its standalone prospects as it fends off an unwanted approach from Italy’s UniCredit.Germany’s leading lender for small and medium-size companies outlined a fresh strategy to defend its independence as UniCredit’s attempts to engineer a merger are slowed down by political opposition and pending elections.

Commerzbank plans to axe 3,900 mostly local jobs to help it deliver more ambitious profit targets as part of its strategy to fend off UniCredit's advances for a tie-up between the German and Italian lenders,