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[BUSINESS] · Italy · 9 sources

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Mps CEO prepares defensive maneuvers against Intesa Sanpaolo takeover bid

Luigi Lovaglio, CEO of Monte dei Paschi di Siena (Mps), is preparing a series of defensive maneuvers to counter a 30.6 billion euro takeover bid from Intesa Sanpaolo. An extraordinary Board of Directors meeting is scheduled for August 20 to discuss these counter-strategies.

The proposed plan involves a dual-track approach: an exchange offer (Ops) for Banco Bpm and another for Banca Generali. The Mps-Banco Bpm merger could create a powerful retail banking alternative in Italy, though it faces potential opposition from Credit Agricole, which holds nearly 30% of Banco Bpm. The move toward Banca Generali would leverage Mps's existing stake in the company.

Financial experts and analysts have expressed skepticism regarding the feasibility of these moves. Challenges include the need for European Central Bank authorization for such unconventional operations and the constraints of the 'passivity rule,' which may require shareholder approval for significant defensive actions. The outcome of this battle could significantly shift the balance of power within the Italian banking sector.

Entities

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

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