Italian bank Monte dei Paschi di Siena said Friday that it was launching a bid for its larger rival Mediobanca, a potential 13.3 billion euro ($13.9 billion) deal that could help reshape the country's banking sector.

The move -- which a source close to Mediobanca said was hostile -- comes amid a flurry of recent activity within Italy's banks including potential mergers and acquisitions.

The world's oldest bank, Monte dei Paschi (MPS) said the buyout offer for Mediobanca was valued at 15.992 euros per share, a premium of 5.03 percent over Thursday's closing price.

Mediobanca shares jumped 5.1 percent to 16.075 euros at midday Friday on the Milan stock exchange, while shares of MPS dropped 8.1 percent to 6.408 euros.

MPS said its bid........

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