Mediobanca launched a bid to buy Banca Generali for 6.3 billion euros ($7.16 billion), betting on an acquisition of its own as it tries to fend off an unsolicited takeover offer from Monte dei Paschi.

The surprise move marks the latest twist in a wave of consolidation sweeping through Italy’s crowded banking market. Beyond Mediobanca itself being a target, UniCredit is pursuing an acquisition of peer Banco BPM–which rejected the approach, and is simultaneously buying asset manager Anima Holding–while smaller lenders have also scurried to launch offers to defend their market positions.