MILAN (Reuters) – Mediobanca (OTC:)’s board will meet on Tuesday to debate a bid for the Italian service provider financial institution by state-backed Monte dei Paschi di Siena (MPS), an individual near the state of affairs stated.

On Friday, MPS joined the consolidation wave sweeping Italian banking with a 13.3 billion euro ($13.96 billion) all-share provide to purchase Mediobanca, which was welcomed by the Italian authorities, however puzzled analysts and traders. 

In a letter despatched to employees on Saturday and seen by Reuters, Mediobanca’s Chief Govt Alberto Nagel stated the MPS provide had not been agreed with the financial institution and that the board would specific its views, with the purpose of defending the pursuits of all stakeholders, notably workers.

On Friday, an individual near the state of affairs informed Reuters that MPS provide was not pleasant, although not surprising. 

MPS is providing 23 of its personal shares for each 10 Mediobanca shares tendered, representing a 5% premium to Thursday’s closing value. Nevertheless MPS shares misplaced 7% on Friday, that means the provide now implies a 1.2 billion euro low cost to the market value. 

($1 = 0.9530 euros)