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Rescued Italian company Monte dei Paschi di Siena has launched an all-share takeover bid worth 13.3 billion euros ($13.95 billion) on its larger local peer. Mediabanka.
Monte dei Paschi is offering 23 of its shares for 10 of its target, valuing Mediobanca shares at around €15,992 each, a 5% premium to the closing price on January 23.
Monte dei Paschi shares were worth 8.7 billion euros as of the Jan. 23 close, while Mediobanca's market capitalization was 12.3 billion euros, according to FactSet data.
Banco Monte dei Paschi, the world's oldest bank, needed a state bailout in 2017 after years of huge losses, but it has managed to turn its fortunes around under the leadership of… unicredit Veteran Luigi Lovaglio.
The offer adds to a picture of rising appetite for mergers and acquisitions in Italy's banking and financial services sector, where UniCredit, the country's second-largest bank, had previously offered to buy the stake. BBM BankWhich in turn seeks to acquire the fund management company Anima Holding.
— CNBC's Ganesh Rao contributed to this report.
This breaking news story is being updated.
