Intesa Sanpaolo strengthens Monte dei Paschi takeover bid

Intesa Sanpaolo has strengthened its takeover bid for Monte dei Paschi di Siena (MPS) following a price increase to 1.25 euros per share. The bid gained significant momentum after Delfin, the Del Vecchio family's investment vehicle and MPS's largest shareholder with a 17.6% stake, committed to participating in the offer and voting in alignment with the terms of the bid.

Analysts suggest that the success of Intesa's offer is now highly probable, placing significant pressure on MPS CEO Luigi Lovaglio. Lovaglio had proposed a defensive counter-strategy involving takeover bids for Bpm and Banca Generali, but experts view this alternative as having a low probability of success.

The Italian Ministry of Economy and Finance (MEF), which holds a 4.8% stake in MPS, faces a potential windfall of 185 million euros if it adheres to the Intesa offer, which could result in the state becoming a 1% shareholder in Intesa Sanpaolo. Lovaglio is reportedly considering postponing the shareholder meeting scheduled for October 29 to consult with advisors and evaluate potential exits.