Monte dei Paschi—widely considered the world's oldest bank still in operation—said Friday it is launching all-share bids for Italian peers Banco BPM and Banca Generali with a total value of €34.02 billion ($39.73 billion).

The Italian lender is seeking to buy up to 1.52 billion shares of Banco BPM, offering 1.567 of its shares for each Banco BPM share. For Banca Generali, it is offering 6.958 of its shares per share. The offers value Banco BPM at €25.3 billion and Banca Generali at €8.72 billion.

Monte Paschi will call a shareholder meeting on Oct. 29 to approve the takeover plans. If successful, the deal would create a major Italian banking group.