The leader of the Italian sector, Intesa Sanpaolo, put an astronomical amount on the table in an attempt to thwart the competition's plans and create a new power on the Old Continent.
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The financial Mount Everest on the table
As CNBC reported on Monday, Intesa Sanpaolo has submitted an official offer to take over Banca Monte dei Paschi di Siena, worth EUR 30.6 billion.
The scale of this transaction is historic. If the merger is successful, there will be a tectonic shift in the European market – the combined institutions will create the 2nd largest bank in Europe in terms of market capitalization.
Intesa's proposal includes very attractive conditions for existing shareholders. The official announcement indicated that the offer includes a bonus of 12.5 percent. compared to the closing price of MPS shares on Friday. This shows how highly valued the bank rooted in tradition is, whose real market value is currently estimated at EUR 27.4 billion.
Instant counteroffer and French support
Intesa Sanpaolo's move is not a coincidence. This is a direct, aggressive response to Banco BPM's previous actions. The Italian banking sector followed Sunday's events with bated breath, when the BPM management board unanimously accepted its intention to express interest in talks with MPS regarding a “merger of equal entities”.
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Banco BPM planned careful and collaborative consolidation. Although the bank did not provide many details about the structure of the transaction, only indicating that both groups would have an equal position in the combined entity, this plan has gained a powerful ally.
French Credit Agricole, which is the main shareholder of Banco BPM, informs in an interview with CNBC that it is “interested in analyzing value creation opportunities that can strengthen BPM”clearly supporting the concept of merger with MPS. Intesa's offer is aimed at completely blocking this alliance.
From state rescue to the jewel in the crown
Banca Monte dei Paschi di Siena, founded in 1472, has undergone a remarkable journey in recent years. After a turbulent period and the necessary recapitalization by the state in 2017, the institution was privatized again in 2023. Since then, MPS has been growing in strength and has become the main driver of the consolidation of Italian finances – especially after last year's takeover of Mediobank, which made it the largest shareholder of the insurance giant Generali.
The stock market's reaction to Monday's news was varied and shows investors' nervousness. At the beginning of Monday's session, shares of Intesa and Banco BPM fell by 4 percent, respectively. and 1.1 percent, while MPS securities gained 0.9 percent. The fight for control of this legendary institution is just heating up, and the stakes have never been higher.
