Banco BPM is proposing to pay more to buy fund manager Anima Holding, which it needs to control to reach its new profit and payout targets as it tries to fend off a takeover by bigger rival UniCredit.

The lender lifted its offer for asset manager Anima as it outlined higher midterm targets and seeks to defend itself from an unsolicited UniCredit takeover approach.

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.

Commerzbank AG Chief Executive Officer Bettina Orlopp is set to unveil job cuts across the back office as she seeks to prove the lender’s future is better without a takeover by UniCredit SpA.