Italy Bank Merger Wave Heats Up As Mediobanca Eyes Banca Generali

Mediobanca is itself trying to fend off a hostile takeover by state-backed Banca Monte Paschi di Siena (MPS) as the Italian banking industry sees a wave of hostile bids (Credit: AFP)

Italian bank Mediobanca, itself battling to fend off a hostile takeover by a rival, announced on Monday a 6.3-billion-euro ($7.2 billion) bid to buy wealth management firm Banca Generali.

Mediobanca is planning to use its 13.1 percent stake in Italy's largest insurance company, Generali, to pay for the acquisition of the group subsidiary Banca Generali, the statement said.