The takeover led to fierce criticism of Italian business practices

ABN Amro had been up against local bank Banca Popolare Italiana (BPI), which owned 29.5% of lender Antonveneta.

BPI looked to have won the tussle, but its bid was frozen amid accusations of illegal share trades and collusion that reached as far as the Bank of Italy.

ABN Amro would become the first foreign bank to buy a major Italian lender.

BPI said it had agreed to sell its shares for 26.50 euros each, more than Antonveneta's closing price of 26.09 euros on Wednesday. The deal would value Antonveneta at close to 7.6bn euros (�5.1bn; $ 9.3bn).

Following the purchase, ABN Amro will own almost 60% of Antonveneta.

"BPI has has announced their intention to sell, obviously we have the intention to buy from them," an ABN Amro spokeman said.

"Things are moving in the right direction but the agreement has yet to be signed."

Business soap opera

The Italian financial world has been gripped as the battle which surrounded Antonveneta unfolded over the summer.

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Foreign firms have been attracted to Italy's banking market by its wide profit margins and large number of lenders ripe for consolidation.

However, they have found it difficult to break into the market and Italy has been accused of protectionism.

This view was given some credence when Antonio Fazio, the powerful governor of the Bank of Italy, was recorded talking to the chief executive of BPI about the bidding for Antonveneta.

Mr Fazio has denied any wrongdoing and is resisting calls for his resignation.

By the time the recordings surfaced, questions already had been raised over how BPI managed to build up its stake in Antonveneta and financial watchdog Consob decided it should suspend the bid pending an investigation.