Italian bank Mediobanca, itself battling to fend off a hostile takeover by a rival, announced on Monday a 6.3-billion-euro ($7.2 billion) bid to buy wealth management firm Banca Generali.

Mediobanca is planning to use its 13.1 percent stake in Italy's largest insurance company, Generali, to pay for the acquisition of the group subsidiary Banca Generali, the statement said.

"The combination between the two companies will produce a European market leader,"........

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