Monte dei Paschi bids for BPM, Banca Generali to stave off Intesa takeover
Monte dei Paschi bids for BPM, Banca Generali to stave off Intesa takeover
By Valentina Za, Andrea Mandala and Giulio Piovaccari Fri, August 21, 2026 at 6:57 AM UTC
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By Valentina Za, Andrea Mandala and Giulio Piovaccari
MILAN, Aug 21 (Reuters) - Monte dei Paschi di Siena on Friday launched simultaneous all-share takeover bids worth about €34 billion ($39.8 billion) for rival Banco BPM and wealth manager Banca Generali, escalating a battle reshaping Italy's banking sector.
The move marks CEO Luigi Lovaglio's boldest attempt yet to fend off a €36 billion hostile takeover approach launched by sector leader Intesa Sanpaolo in June, which sought to absorb MPS in a deal opposed by management and viewed by Rome as potentially reducing competition in domestic banking.
As part of the deal, Monte dei Paschi (MPS) also proposed an "extraordinary distribution" to its shareholders worth €4 billion, slightly more than the €3 billion offered by Intesa.
The dividend offered by MPS would be paid partly in cash and partly through shares of Generali
DEAL AIMED AT CREATING ITALY'S THIRD LARGEST BANKING GROUP
The plan, aimed at creating Italy's third-largest banking group by assets, secured backing from a majority of board members at a meeting on Thursday. The opposition of a minority may create hurdles for the future of the project.
Given the existing Intesa bid, MPS shareholders - who include Delfin, the family vehicle of the Del Vecchio eyewear business dynasty, billionaire businessman Francesco Gaetano Caltagirone and Italian Treasury - will have to vote its plan at a meeting scheduled for October 29.
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Under Italian takeover rules, any MPS countermeasures to Intesa's bid require clearance by more than 50% of its shareholders.
EXPECTED ANNUAL SYNERGIES OF AROUND €2.6 BILLION
The twin deals would ensure estimated annual pre-tax synergies of around €2.6 billion, MPS said, while creating a banking entity with a pro-forma balance sheet of roughly €466 billion and more than €810 billion in total financial assets.
"The offers are designed to create a newly elevated national champion with distinctive capabilities across banking, advisory and wealth management," the bank said in a statement.
MPS, which has reached a market value of €36 billion after buying merchant bank Mediobanca last year, said it was offering 1.567 newly-issued shares for each Banco BPM share and 6.958 for each Banca Generali share, valuing the targets at about €25.3 billion and €8.7 billion respectively.
The completion of the deal, including regulatory approval, with completion, is targeted by mid-February 2027.
($1 = 0.8553 euros)
(Reporting by Valentina Za, Andrea Mandala and Giulio Pioavaccari and Mirko Miorelli; Writing by Giulio Piovaccari; Editing by Elaine Hardcastle, Will Dunham and Gavin Jones)
Source: “AOL Money”
