Monte dei Paschi di Siena faces critical shareholder vote amid takeover tensions

The Monte dei Paschi di Siena (MPS) board has maintained its opposition to Intesa Sanpaolo’s takeover bid, criticizing both the offered price and the industrial strategy. A decisive vote is scheduled for October 29 regarding the Lovaglio plan, which includes a double offer on Banco BPM and Banca Generali alongside a four-billion-euro extraordinary dividend. However, the plan faces significant opposition; shareholders representing over one-third of the capital, including Delfin, Caltagirone, and Benetton, are expected to vote against it. Proxy advisors ISS and Glass Lewis have also raised concerns regarding the stability and sustainability of the plan.

Intesa Sanpaolo has increased its cash component to 1.25 euros per share and stipulated that if any part of the Lovaglio plan is approved, its own offer will lapse.

In Siena, local leadership has expressed concern over the potential impact on the region. The Mayor of Siena and the President of the Province of Siena issued a statement calling for transparency from the President of the Fondazione Monte dei Paschi di Siena, Riccardo Coppini. They emphasized the need to protect the bank’s historical, social, and economic ties to the territory, specifically regarding the maintenance of general management in Siena and local employment levels.