Monte dei Paschi di Siena: Treasury to abstain from upcoming assembly

Italian Treasury Minister Giancarlo Giorgetti has announced that the state will not participate in the upcoming Monte dei Paschi di Siena (MPS) extraordinary assembly on October 29. Holding a stake of just under 5%, the Treasury intends to follow market decisions, with Giorgetti stating that the market will likely “reward the best offer.”

The decision places the state in a position of neutrality between two competing paths. On one side is a voluntary takeover bid from Intesa Sanpaolo, valued at approximately €30.6 billion, which involves exchanging 16 Intesa shares for every 10 MPS shares plus €1 in cash.

On the other side is a defensive strategy proposed by MPS management, which includes a double takeover bid for Banco BPM and Banca Generali, a merger with Mediobanca, and a significant industrial plan. To approve these defensive measures, MPS requires a two-thirds qualified majority under the “passivity rule.” By abstaining, the Treasury effectively reduces the weight of the state's vote, potentially increasing the influence of private institutional investors and funds in determining the bank's future.