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.

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.

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’s board plans to meet on Tuesday to review Banca Monte dei Paschi di Siena SpA’s takeover offer, according to people 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.