By Reuters

(Reuters) - Commerzbank (CBKG.DE)  said on Wednesday that it would begin to buy back up to 1 billion euros ($1.18 billion) in shares starting on Thursday, a move that comes as it seeks to remain independent with Italy's UniCredit (CRDI.MI) calling for a tie-up.

The German lender had already announced in August its intentions to buy back the shares but is only now presenting the details after getting regulatory approval.

The investor-friendly act comes as the German lender tries to convince its shareholders of its standalone strategy while UniCredit builds up its stake in Commerzbank and pushes for talks to combine.

"Returning capital to our shareholders is a core element of our value creation strategy," CEO Bettina Orlopp said in a statement.

A line chart with LSEG data shows share performance.

The announcement comes as Commerzbank's management and supervisory boards conclude an annual strategy session.

The buyback, the bank's fifth since 2023, will conclude by Feb. 10.

UniCredit now has a 26% equity stake in Commerzbank and plans to increase its holding to just under 30% in the coming months.

UniCredit's CEO Andrea Orcel has argued the benefits of a merger since beginning to build up its stake a year ago.

Last week, Orcel said he hoped Commerzbank "would see the light over time".

A timeline of key days in the Commerzbank-UniCredit saga

($1 = 0.8510 euros)

Reporting by Tom Sims, editing by Rachel More

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