Based on the agreement, Banca Antoniana Popolare Veneta (BAPV) acquires an option on a 50.4 per cent stake in Banca Nazionale dell'Agricoltura (BNA) held by Banca di Roma, ABN Amro said in a statement.

Earlier, Banca di Roma said it would sell control of its BNA unit to BAPV. ABN Amro said it would study the possibilities of increasing its stake in BAPV.

ABN Amro joins the core shareholder group of Banca di Roma and enters a commercial alliance in investment banking, asset management and international banking. ABN said the deal fits in with its European expansion strategy.

"This will enable us to gradually take a significant position in the Italian banking sector, which will evolve in an ongoing consolidation process in the coming years," managing board member Jan Maarten de Jong said in thestatement.

ABN Amro is to arrange financing for BAPV by underwriting a convertible bond issue for the acquisition by BAPV of up to 100 per cent of the outstanding shares in BNA. This puts ABN Amro in a position to increase its current 0.5 per cent stake in BAPV to a larger stake in the BAPV BNA combination, ABN Amro said.