Intesa Sanpaolo submitted a €30.6bn takeover proposal for Monte dei Paschi di Siena, the Financial Times reported, and said the transaction would produce significant cost savings while upending a rival merger proposal from Banco BPM for the Siena-based lender.
The offer came a day after Banco BPM proposed a merger of equals with Monte dei Paschi. Intesa said the combined group would have about €1.7tn of assets, more than 27 million customers and about 3,000 branches, making it the eurozone's second-largest banking group.
DEAL DETAILS AND IMMEDIATE CONTEXT
Intesa projected annual pre-tax cost synergies of about €1.5bn and revenue synergies of about €1.4bn, with integration costs of about €2.1bn before tax. The bank valued the proposal at €30.6bn.
TIMETABLE AND TERMS
Intesa expects the deal to complete in December 2026. It called an extraordinary shareholders' meeting for 10 September to approve the issue of up to 5.7 billion new shares to fund the offer.
The offer values MPS at €10.09 a share, a 12.5% premium to Friday's close, paid as 1.6 new Intesa shares plus €1 in cash for each MPS share. To address competition concerns, Intesa agreed to sell about 635 MPS branches and the MPS brand to insurer Unipol for €3bn–€3.5bn, to be combined with BPER Banca.
Sources: Intesa Sanpaolo; Financial Times