Intesa Sanpaolo has increased its offer for Monte dei Paschi di Siena (MPS), offering shareholders an additional €800m ($900m) in cash if they vote against the bank’s alternative plan.

The revised terms include €1.25 in cash for every MPS share tendered, up from €1 previously offered.

Shareholders would also receive 1.6 newly issued Intesa shares for each MPS share. Intesa announced the original €30bn share-and-cash proposal in June.

Besides, Delfin, MPS’ largest shareholder, is supporting Intesa’s tender offer with its 17.6% holding in the bank, according to an Intesa statement.

Delfin is the holding company of Italy’s Del Vecchio family.

Intesa said Delfin agreed to vote at Paschi’s meeting “in a manner consistent with the conditions of the Offer as at that date.”

MPS CEO Luigi Lovaglio is seeking shareholder approval on 29 October for a plan opposing Intesa’s offer.

Italian takeover rules require him to obtain shareholder backing before proceeding with the proposal announced in August, Reuters reported.

Lovaglio’s plan involves two separate all-share takeover bids by MPS for wealth manager Banca Generali and rival lender Banco BPM.

Last month, MPS set out plans to acquire Banco BPM and Banca Generali in two separate share-based offers worth a combined €34bn ($40bn), as it tries to avoid being taken over by Intesa Sanpaolo.

Intesa said approval of either bid by MPS shareholders on 29 October would give it the right to withdraw its own offer, subject to the conditions attached to the bid.

Delfin’s support means Lovaglio must secure backing from other investors to obtain the two-thirds majority required to continue with his proposals, Bloomberg reported.