Investing.com — Shares in Italian banks Mediobanca (OTC:MDIBY) and Monte dei Paschi (MPS) experienced a drop at market open on Monday, continuing the downward trend from Friday.
The drop followed a surprise bid of 13.3 billion euros ($13.93 billion) for the merchant bank by the state-backed lender MPS.
At 0802 GMT, on the Milan bourse, shares in Mediobanca were up by 0.3%, while MPS shares had fallen by 1.2%.
The proposed takeover by MPS is part of a larger trend of consolidation within the Italian banking sector. Despite being welcomed by the conservative government led by Prime Minister Giorgia Meloni, it has left analysts and investors puzzled.
This move by MPS comes after previous attempts to return the bank to the private sector were unsuccessful.
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