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[BUSINESS] · Italy · 69 sources

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Monte dei Paschi di Siena launches 34 billion euro defensive bid

Monte dei Paschi di Siena (MPS) has approved a defensive strategy to counter a takeover bid from Intesa Sanpaolo. The plan involves two simultaneous, all-share exchange offers to acquire Banco BPM and Banca Generali, with a total estimated value of approximately 34 billion euros.

The offer for Banco BPM is valued at roughly 25.3 billion euros, utilizing an exchange ratio of 1.567 MPS shares for each Banco BPM share. The offer for Banca Generali is valued at approximately 8.7 billion euros, providing a 10 percent premium with an exchange ratio of 6.958 MPS shares per Banca Generali share. To further incentivize support, MPS plans to distribute an extraordinary dividend of 4 billion euros to its shareholders, consisting of 1 billion euros in cash and 3 billion euros in Banca Generali shares.

If fully accepted, the resulting group—which would also incorporate Mediobanca—would become the third-largest Italian banking group by total assets, with approximately 466 billion euros in assets and over 810 billion euros in total financial assets. The plan requires approval from an extraordinary shareholders' meeting scheduled for October 29. The effectiveness of the strategy remains subject to regulatory approvals and reaching a minimum acceptance threshold of 50 percent plus one share.

Entities

Banca Generali · Banco BPM · Intesa Sanpaolo · Luigi Lovaglio · Monte dei Paschi di Siena

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