A group of Italian investors in Banca Naxionale del Lavoro this morning tried to block Spain's BBVA from buying out Italy's sixth-ranked bank,
The property developers, who own 24 per cent of BNL, criticised the financial performance of BNL with BBVA as its top shareholder and also said in a statement they were "puzzled" by the possible €6.5 billion ($8.7 billion) bid.
BBVA and Dutch bank ABN AMRO challenged Italy over its restrictions on foreign takeovers in the country's fragmented banking sector, saying they might make takeover bids for BNL and Banca Antonveneta.
BBVA and ABN are the top investors in BNL and Antonveneta with stakes of nearly 15 and 13 per cent, respectively.
But, held back from buying more shares by the Bank of Italy's restrictions on foreign banks, they have been unable to fend off Italian investors from making moves on their interests.
Italy's banking sector is attractive as an underdeveloped market where domestic consolidation is expected in coming years, and where bank account fees are among the highest in Europe.
But the Italian government is mindful of how the banks often provide critical support to leading industrial companies such as Fiat and has so far shown no sign of breaking with the Bank of Italy's policy of keeping foreigners on a short leash.