MILAN (AP) — Italian bank Mediobanca on Tuesday rejected a surprise takeover attempt by domestic rival Monte dei Paschi di Siena.

Mediobanca said in a statement that the offer “is devoid of industrial and financial rationale.”

Monte dei Paschi, Italy’s oldest bank, launched a 13.3 billion-euro ($13.9 billion) takeover bid last week for larger Milan-based peer Mediobanca that aims to reshape the Italian banking sector. Monte dei Paschi said that the tie-up would generate 700 million euros ($733 million) a year in pretax synergies, and deliver significant profits.

But Mediobanca said that the offer compromises its “identity and business profile, which is focused on high-value-added business segments with clear growth trajectories,” and that it would destroy shareholder value at both banks.

The buyout offer came after the Italian government moved to reprivatize the once-troubled Monte dei Paschi, whose largest shareholder has been the Italian Treasury since an expensive bailout in 2017.

Premier Giorgia Meloni said over the weekend that the merger, if successful, would create Italy’s third-largest bank, and could “play an important role in the safekeeping of Italians’ savings.”

The bank's major shareholders are expected to discuss the bid at a regular meeting next month on 2024 financial results.

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