The bid will put pressure on Bank of Italy governor Antonio Fazio

The takeover offer comes hot on the heels of Spanish bank BBVA's 6.4bn euro bid for Italian firm Banca Nazionale del Lavoro, announced on Tuesday.

Both takeover approaches will challenge Italy's longstanding desire to keep control of banks in domestic hands.

If approved by regulators and shareholders, the Antonveneta deal will create Europe's ninth largest bank.

Attractive market

ABN Amro already owns 13% of Antonveneta, Italy's ninth largest lender.

It is proposing to offering 25 euros per share for the remaining equity.

"Italy is an attractive and large market with strong growth opportunities," ABN Amro chief executive Rijkman Groenink commented.

The takeover approach will increase the pressure on the Bank of Italy, the country's central bank, which has strongly opposed foreign ownership of Italian banks.

Italian resistance

Its stance has been backed up by Italian ministers, who have expressed concern about domestic banks falling into foreign hands.

However, the European Commission has warned that market forces must be allowed to dictate the future of Italian banks.

Charlie McCreevy, the EU's Single Market Commissioner, has told Bank of Italy governor Antonio Fazio that any attempt to block BBVA's bid for Banca Nazionale - Italy's fourth largest bank - would not be permitted.

If the two deals go ahead, they would be the first foreign takeovers of Italian banks.

ABN Amro, currently Europe's 11th largest bank, also has a stake in Italian lender Capitalia.