MILAN — On Tuesday, Mediobanca, an Italian banking institution, firmly dismissed a recent takeover proposal from its local competitor, Monte dei Paschi di Siena. The bank released a statement indicating that the proposed offer lacked any substantial industrial or financial justification.

Last week, Monte dei Paschi, recognized as the oldest bank in Italy, submitted a bid valued at 13.3 billion euros (approximately $13.9 billion) for Mediobanca, a larger bank based in Milan. This move is part of Monte dei Paschi’s strategy to transform the Italian banking landscape. Monte dei Paschi claimed that the merging of the two banks would yield annual pre-tax synergies of about 700 million euros (around $733 million), as well as generate significant profitability.

In contrast, Mediobanca argued that the proposed acquisition would undermine its business identity and profile, which is geared towards high-value sectors with clear opportunities for growth. Mediobanca expressed concerns that such a merger would ultimately harm shareholder value for both entities involved.

The takeover initiative follows the Italian government’s efforts to re-establish Monte dei Paschi as a private institution. This comes after the bank was rescued by the state in 2017 and has since relied on the Italian Treasury as its predominant shareholder.

Prime Minister Giorgia Meloni noted over the weekend that if the merger were to succeed, it would result in the creation of Italy’s third-largest bank, potentially playing a significant role in safeguarding the savings of Italian citizens.

The major stakeholders of Mediobanca are anticipated to review the takeover bid during a scheduled meeting next month, which will also cover the financial outcomes for 2024.