ROME (Reuters) - Shares in Italy's Mediobanca and Monte dei Paschi (MPS) fell at market open on Monday, extending Friday's losses, after the state-backed lender launched a surprise 13.3-billion-euro ($13.93 billion) bid on the merchant bank.

Mediobanca shares were down 0.3% and those in MPS were down 2% on the Milan bourse at 0802 GMT, compared to a fall of 0.7% for the Italian banking index.

MPS' proposed takeover, the latest move in wave of consolidation in the Italian banking sector, was welcomed by Prime Minister Giorgia Meloni's conservative government but has puzzled analysts and investors.

It came after previous attempts to return Monte dei Paschi (MPS) to the private sector failed.

($1 = 0.9551 euros)