By Tom Sims and John O’Donnell

FRANKFURT (Reuters) – Commerzbank’s board discussed how to keep the German lender independent and explored defense strategies amid a potential bid from UniCredit, a person familiar with the discussions said on Wednesday.

While Commerzbank would engage in discussions with UniCredit in the event of a formal approach in line with its legal obligations, the bank is seeking to pursue a standalone strategy, said two people, who asked for anonymity because the discussions are private.

Commerzbank declined to comment.

Italy’s second-largest bank earlier on Wednesday said it bought a 9% stake in the German lender. Later, CEO Andrea Orcel approached Commerzbank about exploring merger talks, one of the people told Reuters.

The German bank has tapped Goldman Sachs to advise on its defense options, a person familiar with the discussions told Reuters.

The raid on Commerzbank has reignited speculation of consolidation in Europe’s fragmented bank sector. But a bigger move on Commerzbank could raise political and union opposition in Germany as well resistance among some within the German bank.

(Reporting by John O’Donnell and Tom Sims; Editing by Elisa Martinuzzi)