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Monte dei Paschi di Siena's simultaneous offers for Banco BPM and Banca Generali are the latest in a series of moves seeking to transform Italy's once-dormant banking sector.

Banca Monte dei Paschi di Siena said it is launching all-share bids for Italian peers Banco BPM and Banca Generali with a total value of $39.73 billion.

Banca Monte ​dei Paschi CEO Luigi Lovaglio is working on two ‌potential share-swap offers for Banco BPM and Banca Generali as alternatives to Intesa Sanpaolo's takeover bid for the Tuscan lender, daily Il Sole 24 ​Ore reported on Wednesday citing banking sources.

Banco BPM strengthened its full-year guidance on Wednesday after reporting second-quarter earnings above market expectations, days after ​the collapse of merger talks with Monte dei Paschi ‌di Siena (MPS).

The move could clear the way for a rival $35 billion takeover offer from Intesa Sanpaolo.