The decision by Italy's market watchdog, Consob, not to force a group of shareholders to make a full offer for the Florence-based insurer Fondiaria threatens to undermine efforts to improve takeover procedures, according to fund managers.

Like so many Italian corporate tussles, the insurance battle, which has kept bankers and lawyers busy for more than nine months, is set to end with no discernible benefit for minority shareholders in the change of control.