Italy bank merger wave heats up as Mediobanca eyes Banca Generali

Rome: 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...

Rome: 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 the insurance group Generali to pay for the acquisition of Banca Generali, the statement said.

"The combination between the two companies will produce a European market leader," Mediobanca stated as it looks to alight on a "unique opportunity" that would offer clients "an enhanced and excellent product range."

"A merger of Banca Generali and Mediobanca ... will allow the creation of a diversified group ... with well above-market growth perspectives," said Mediobanca general director Alberto Nagel in his institution's statement.

Mediobanca estimates synergies flowing from a link-up at 300 million euros, half of that stemming from reduced costs and the remainder from increased receipts.