Mediobanca gets ECB approval for Banca Generali deal

MILAN, Aug 18 (Reuters) - Mediobanca MDBI.MI received European Central Bank approval on Monday to buy private bank Banca Generali BGN.MI and create Italy's second-largest wealth manager, as it seeks to thwart a takeover bid from Monte dei Paschi di Siena BMPS.MI.

The ECB has also approved the acquisition of direct and indirect shareholdings that together amount to more than 10% of the Mediobanca Banking Group’s consolidated own funds.

The ECB's green light paves the way for merchant bank Mediobanca to launch its offer if it wins shareholder backing at a vote due on August 21.

Mediobanca had originally scheduled the vote for June but had to push it back as the proposal lacked sufficient support.