Italian bank Monte dei Paschi launches 13 billion euro takeover bid for peer Mediobanca

Italian bank Monte dei Paschi di Siena has announced it is launching a 13.3 billion euro takeover bid for larger peer Mediobanca in a surprise move that could reshape the country’s banking sector. Friday's offer values Mediobanca’s shares at 15.99 euros each, a 5% premium on their closing price on Thursday. Monte Paschi, Italy's oldest bank, has a market capitalization of about 9 billion euros, while Mediobanca’s market value is about 12.7 billion euros. Under the terms of the offer, Mediobanca investors would receive 23 shares in Monte Paschi for every 10 Mediobanca shares they hold.