Monte dei Paschi di Siena’s board said Intesa Sanpaolo’s improved takeover offer continued to leave investors facing several uncertainties. The board issued its preliminary assessment on 12 October after reviewing the latest terms. It also said accepting the proposal would require shareholders to abandon a possible alternative strategy. The statement did not reject the bid or present a new counteroffer.
Intesa’s proposal values MPS at about €34 billion and combines newly issued shares with cash. Intesa earlier pledged an additional €800 million in cash if MPS shareholders reject chief executive Luigi Lovaglio’s defence plan. That addition increased the offer’s cash component by 25%, according to Reuters. Intesa has said it could withdraw its bid if shareholders approve the competing plan.
BOARD PRESERVED STRATEGIC QUESTIONS
The MPS board’s response marked the target bank’s first formal assessment after Intesa sweetened the offer. Its emphasis on uncertainty preserved questions about value, conditions and the consequences of abandoning MPS’s alternative strategy. The board did not recommend a final course for investors in the announcement.
Lovaglio’s plan centres on proposed all-share acquisitions of Banca Generali and Banco BPM and a combination with Mediobanca. It requires approval from two-thirds of votes represented at the 29 October meeting. Shareholders holding roughly 30% of MPS had publicly opposed the plan by 11 October, Reuters reported, making the threshold difficult to reach.
SHAREHOLDER VOTE SETS NEXT TEST
Intesa has gained backing from several significant MPS shareholders, including Delfin, the bank’s largest investor. Its revised terms offer 1.6 newly issued Intesa shares and €1.25 in cash for each MPS share if the conditions are met. The competing paths would reshape ownership across a broad group of Italian banks and insurers.
The 29 October vote is the next defined milestone because it determines whether MPS can advance the alternative plan and whether Intesa’s conditional cash increase applies. Until shareholders decide, the board’s preliminary view adds scrutiny without resolving the contest. Investors must weigh the revised bid against the execution and approval risks attached to the defence strategy.