Italy’s government gave its backing on Friday to Banca Monte dei Paschi’s (MPS) bid for merchant bank Mediobanca, as the proposed deal may strengthen the country’s banking system and its broader economy.

Economy Minister Giancarlo Giorgetti, a member of the right-wing League party, said the move by the bailed-out Tuscan lender was “totally transparent and in the interests of the Italian economy.”

The 13.3 billion euro ($13.97 billion) all-share offer comes after a year in which the Italian Treasury has sharply cut its stake in MPS, lining it up for an M&A deal and a return to the private sector.

Speaking at a League party gathering in northern Italy, Giorgetti praised MPS’s management team for its “excellent results” and said it was now up to the market to deliver its verdict on the proposed deal.

Source: DUNYANEWS