Italy’s Mediobanca launches €6.3bn offer for Banca Generali

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Mediobanca has launched a €6.3bn takeover offer for Italian rival Banca Generali, as efforts to consolidate the country’s banking industry intensify.

Milan-based Mediobanca said on Monday that a combination of the two lenders would create a “European market leader”.

The move comes as Mediobanca seeks to fend off a hostile bid from smaller rival Monte dei Paschi di Siena.

Mediobanca is the biggest shareholder in Assicurazioni Generali, Banca Generali’s parent company. To fund its proposed takeover of Banca Generali, Mediobanca said it would sell its stake in Assicurazioni Generali.

A takeover would expand Mediobanca’s wealth management business and potentially counter criticism from shareholders that it had become too reliant on its stake in Generali for profits.

Setting out the reasons for the deal on Monday, Mediobanca said combining the lenders would generate about €300mn in synergies.

Chief executive Alberto Nagel said the transaction would create “a solid, profitable group which excels in creating value for all its stakeholders”.

Mediobanca’s offer represents an 11.4 per cent premium to Friday’s closing share price for Banca Generali.

The country’s banking industry is in the throes of consolidation as lenders seek greater scale to compete in Italy and across Europe.

Mediobanca shareholders will vote on the deal at a meeting on June 16.