Finally, investors in Italian banking are breaking cover. Although many of the country's lenders have long had foreign banks as large shareholders, no foreign bank owns a group of any size. Domestic opposition - especially from the Bank of Italy, the central bank that has a veto on mergers - has for years stopped bolder moves.Now two foreign groups already present as shareholders have launched full takeover bids, stung into action by manoeuvres from Italian rivals.

BBVA, the Spanish bank, wants to acquire Banca Nazionale del Lavoro (BNL), where it has a 14.7 per cent stake,in the face of opposition from a group of property developers that agreed an investor pact seen by BBVA as contrary to its interests. Meanwhile ABN Amro of the Netherlands, a shareholder in Banca Antonveneta, has made a cash offer for the bank but is seeing Banca Popolare di Lodi, a small Italian mutual bank, quickly and controversially amass a large rival shareholding. Lodi talks of defending the autonomy of Antonveneta.