Monte di Paschi di Siena rejects Intesa Sanpaolo's hostile takeover bid

Monte di Paschi di Siena (MPS), Italy's oldest bank, is defending against a hostile acquisition offer from sector leader Intesa Sanpaolo. Intesa's proposal values MPS at roughly €31‑36 billion, offering 1.6 of its shares plus €1 in cash per MPS share, which translates to a premium of about 12.5%—considered too low by MPS. CEO Luigi Lovaglio, who returned to the board in April, said the offer does not fully compensate shareholders for control premium, synergies, or the bank’s strategic value to the Italian economy, warning that fragmentation could weaken systemic strength.

MPS reported a net profit of €610 million for Q2 2026, beating expectations and giving the bank leverage to explore defensive options. The board has formally opposed the bid, citing regulatory and execution risks, and the bank remains open to evaluating all strategic alternatives while emphasizing its role as a strategic asset for Italy.