Advisers for Banca Monte dei Paschi di Siena SpA and Banco BPM SpA are in discussions over a potential merger of equals, according to people familiar with the matter.
The deal would be structured as a mix of shares and cash, the people said. The proposal is being considered as an alternative to Intesa Sanpaolo SpA's €35 billion ($40 billion) bid for Monte Paschi.
The talks between Monte Paschi and Banco BPM advisers are ongoing. The information was provided by people familiar with the matter.