Speculation is growing that Commerzbank, Germany's fourth largest bank, could be the target of a takeover in the coming weeks.

Faced with continuing losses and rising costs, the bank has unofficially held talks with Unicredito Italiano, Italy's second-largest bank, Italian insurer Generali, and Deutsche Bank. Commerzbank has declined to comment on the nature of the talks, but managers have privately conceded that Commerzbank, long seen as a takeover target, is seeking a partner.

"There are no such merger intentions currently in the pipeline for Commerzbank or - as far as I can see - for other banks either," said Mr Klaus-Peter Mueller, manager of the Commerzbank board last week. However, when pressed by journalists, he conceded that if a merger was on the cards, he would be more open to merging with a German concern.