Key facts
- Intesa Sanpaolo has launched a €30.6 billion ($35 billion) unsolicited bid for Monte dei Paschi di Siena (MPS).
- The proposed merger aims to create the euro zone's second-largest lender by market value.
- Intesa's offer includes a 12.5% premium to MPS' closing share price on Friday.
- To address antitrust concerns, Intesa has agreed to sell 635 MPS branches and central offices to insurer Unipol.
- Banco BPM had previously expressed interest in a merger with MPS.
Italy's top banking group Intesa Sanpaolo has launched an unsolicited €30.6 billion ($35 billion) cash-and-share bid to acquire smaller rival Monte dei Paschi di Siena (MPS). The move aims to create the euro zone's second-largest lender by market value, positioning Intesa behind only Spain's Santander and ahead of French bank BNP Paribas and domestic rival UniCredit. This transaction would be the largest banking merger in Italy in two decades.
Intesa CEO Carlo Messina expressed confidence in securing investor support by December, noting the offer includes a 12.5% premium to MPS' closing share price on Friday. The bid comprises 1.6 Intesa shares plus €1 for every MPS share tendered, with a €3 billion cash component. MPS shares jumped 13% on the news, while Intesa shares slipped 1.4%.
To address antitrust concerns, Intesa has agreed to sell 635 MPS branches and central offices to insurer Unipol, an Intesa ally and main investor in BPER Banca. Unipol would pay up to €3.5 billion for these assets, creating a new bank named Banca Monte dei Paschi. The combined Intesa-MPS entity would have a market capitalization of €126 billion and a net income goal of €16 billion by 2029.
Banco BPM, Italy's fourth-largest bank, had previously expressed interest in merging with MPS, but Messina dismissed their approach as a "love letter" compared to Intesa's concrete offer. Intesa's bid prevents MPS from agreeing to a deal with BPM without shareholder approval. Intesa also aims to retain MPS' 13% stake in insurer Generali, though it ruled out a takeover of Generali due to antitrust issues. Intesa unveiled a 3% stake in Generali to preempt any defensive moves from the insurer.