Banca Monte dei Paschi di Siena has proposed a €34 billion share-only exchange offer for Banco BPM and Banca Generali to counter a takeover bid by Intesa Sanpaolo.
Key facts
- •The MPS board approved the plan with nine votes in favor and four abstentions.
- •Intesa Sanpaolo's competing takeover bid for MPS is valued at approximately €30.5 billion.
- •Major MPS shareholders include the Del Vecchio family, the Caltagirone group, BlackRock, and the Italian Ministry of Economy and Finance.
- •The MPS offer for Banco BPM has not been agreed upon with the bank's management.
- •Crédit Agricole and Banca Generali declined to comment on the board's decision.
Banca Monte dei Paschi di Siena (MPS) has formally launched two voluntary public exchange offers for all shares in Banco BPM and Banca Generali. The combined €34 billion proposal serves as a strategic defense against an existing takeover bid for MPS by Intesa Sanpaolo. MPS chief executive Luigi Lovaglio stated the move aims to create a stronger banking group with a pro forma market capitalization of approximately €80 billion.
By the numbers
Structure of the Counter-Bid
The MPS proposal is structured as a share-only exchange, distinct from Intesa Sanpaolo's offer, which combines cash and shares. The offer for Banco BPM is valued at €25.3 billion with an exchange ratio of 1.567 MPS shares per tendered share, while the Banca Generali offer is valued at €8.72 billion with an exchange ratio of 6.958 MPS shares. MPS board members approved the plan following an extraordinary meeting.
Market and Political Context
The proposed combination would position the new entity among the top ten European banks and second in Italy for customer loans and branch networks. The move has drawn attention due to the involvement of major international shareholders, including France's Crédit Agricole, which holds nearly one-third of Banco BPM's capital. Italian Deputy Prime Minister Matteo Salvini expressed support for protecting the autonomy and history of institutions like MPS.
Timeline
- ThursdayMPS shareholders held an extraordinary general meeting to discuss takeover-defense regulations.
- ThursdayThe MPS board approved the exchange offer plan after seven hours of talks.
- FridayMPS formally set out the financial terms of the exchange offers.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Euronews Business, Euronews Business.
