UPDATE 1-Commerzbank sells 74 pct Privatinvest stake to ZKB

* Divestment adds to string of disposals agreed with EU

* Terms of deal not disclosed

* Commerzbank, Dresdner Bank withdrawing from some locations

(Adds details, background)

FRANKFURT, Oct 27 (Reuters) - Commerzbank (CBKG.DE) on Tuesday said it sold a 74 percent stake in Austrian wealth manager Privatinvest Bank to Zuercher Kantonalbank, adding to a string of disposals negotiated with the European Commission.

Commerzbank said on Tuesday it had agreed to keep terms of the deal confidential.

As a condition for approving 18.2 billion euros ($27.1 billion) in bailout funds for Germany's second largest bank, the European Commission ordered Commerzbank to restructure and dispose of non core businesses.

Commerzbank, which bought Dresdner Bank earlier this year, is in the process of refocusing its business of advising wealthy clients, the company said.

Privatinvest Bank AG headquartered in Salzburg, Austria is active in wealth management and securities trading. At the end of June it had assets under management totalling 600 million euros, and employed about 50 staff, Commerzbank said.

In July, Commerzbank sold a Swiss private wealth unit to Vontobel (VONN.S) and another wealth management unit to Liechtenstein-based LGT Group. [ID:nLV471314]

(Reporting by Edward Taylor)