Monte dei Paschi di Siena favors Banco BPM merger over Intesa offer

The board of Italy's oldest bank, Banca Monte dei Paschi di Siena (MPS), officially rejected Intesa Sanpaolo's €30.6 billion takeover proposal, calling the 12.5% premium “too low” compared with typical 30% premiums in similar banking deals. The rejection highlighted concerns over the offered share allocation and projected synergies, which the board deemed overly optimistic.

MPS is now focusing on negotiations with Banco BPM for a parity‑based merger that would preserve more equity for MPS shareholders. Sources say the two banks aim to finalize an integration plan by early August, with involvement from Banco BPM’s principal shareholder Crédit Agricole and other investors such as Delfin and the Caltagirone group. The talks also consider Italian regulatory limits, including the “passivity rule” that restricts certain management decisions during extraordinary transactions.