The surprise move is the latest amid a wave of consolidation in the country’s banking industry in recent months and would create Italy’s third largest entity in the sector.

Mediobanca SpA’s chief executive officer said a takeover attempt by smaller rival Banca Monte dei Paschi di Siena SpA was unsolicited, as the Italian investment bank prepared to respond and possibly defend itself.

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.

Banca Monte dei Paschi di Siena SpA launched a €13.3 billion ($13.9 billion) all-share offer for larger rival Mediobanca SpA, as Italy’s banking consolidation heats up.

Market participants were amazed on Friday to read that Banca Monte dei Paschi di Siena was making an unsolicited bid to take over Mediobanca. While financial specialists have reacted with scepticism, the move has been welcomed by some Italian politicians.

The surprise move is the latest amid a wave of consolidation in the country’s banking industry in recent months and would create Italy’s third-largest entity in the sector.

Mediobanca SpA is opposed to the takeover bid by rival Banca Monte dei Paschi di Siena SpA, according to a person familiar with the matter.

By Valentina Za and Gianluca Semeraro MILAN (Reuters) -State-backed Monte dei Paschi di Siena on Friday joined the consolidation wave sweeping Italian banking with a surprise 13.3 billion euro ($14 billion) all-share offer to buy merchant bank Mediobanca.