The Italian government cut its shareholding in Banca Monte dei Paschi di Siena by 15% allowing peers Banco BPM and Anima Holding to buy stakes in the world’s oldest bank.

Italian Prime Minister Giorgia Meloni moved forward with her plan to use the privatization of Banca Monte dei Paschi di Siena SpA to spur domestic banking consolidation as the latest share sale saw several national firms buy major stakes.

Shares in Monte dei Paschi di Siena jumped 9 per cent in early trading on Thursday after the Italian government sold a 15 per cent stake in the bailed-out lender for €1.1bn, bringing in rival Banco BPM as a shareholder.