The European Central Bank (ECB) has approved Banca Monte dei Paschi di Siena's (MPS) takeover bid for Mediobanca, allowing MPS to acquire a controlling stake in the Milan-based bank. This approval marks a key development in Italy's ongoing banking sector consolidation. In response to the takeover attempt, Mediobanca has announced plans to return approximately €4.9 billion ($5.74 billion) to its shareholders through dividends and other rewards over the next three years, aiming to counter the MPS bid. Mediobanca projects earnings of €1.9 billion and revenues of €4.4 billion by 2028. The bank's management has characterized the MPS offer as lacking strategic rationale and carrying risks. The takeover bid and Mediobanca's defensive measures are part of a broader restructuring trend within the Italian banking industry.