Italian bank Mediobanca, which is fighting off a hostile takeover bid from a competitor, has announced a €6.3 billion offer to buy asset management company Banca Generali, AFP reported.

Mediobanca plans to use its 13.1% stake in the Generali insurance group to pay for the acquisition of Banca Generali, according to the statement.

"The merger of the two companies will create a leader in the European market," Mediobanca said.

Mediobanca itself is trying to fend off a hostile takeover by state-owned Monte Paschi di Siena (MPS) as the Italian banking sector is swept by a wave of hostile bids.

Mediobanca's offer stipulates that if it fails to acquire at least 50% plus one of the total number of shares in Banca Generali, it will withdraw its takeover bid.

It said the takeover would double asset management revenues to €2 billion and quadruple profits to €800 million.

The statement said the acquisition would "transform the relationship between Mediobanca and AG from a financial to a strong industrial partnership." | BGNES