Key facts
- Monte dei Paschi di Siena (MPS) has launched bids worth a combined €34 billion for Banco BPM and Banca Generali.
- The bids are an attempt to fend off a hostile takeover approach from rival Intesa Sanpaolo.
- MPS, founded in 1472, has undergone a significant transformation from a symbol of Italy's banking crisis.
- Recent developments include MPS's acquisition of Mediobanca and dividend payouts.
- Intesa Sanpaolo previously announced a €30.6 billion bid for MPS.
Monte dei Paschi di Siena (MPS), the world's oldest bank, is making a significant move to reshape Italy's financial landscape by unveiling twin bids worth a combined €34 billion ($40 billion) for Banco BPM and Banca Generali. This strategic maneuver, led by CEO Luigi Lovaglio, is designed to counter a hostile takeover attempt from larger rival Intesa Sanpaolo and marks a pivotal moment in MPS's journey from the brink of collapse to a leading financial entity.
Founded in 1472, MPS has a long and tumultuous history, marked by near-collapse and state bailouts. Key events include the costly acquisition of Antonveneta in 2007, a €4.7 billion loss in 2011, and an €8.2 billion EU-cleared bailout in 2017 that handed the Italian state a 68% stake. Despite past struggles, including failed talks with UniCredit in 2021, the bank has been on a recovery path. Recent years have seen significant stake sales by the Treasury, reducing its ownership to 26.7% by March 2024, and the bank paid its first dividend in 13 years in May 2024.
The bank's transformation accelerated with the acquisition of merchant bank Mediobanca in September 2025 for €16 billion, a deal that also positioned MPS as a major investor in insurer Generali. This strategic expansion has positioned MPS as a key player in Italian finance and M&A.
The current aggressive strategy to acquire Banco BPM and Banca Generali comes in direct response to Intesa Sanpaolo's €30.6 billion unsolicited bid for MPS. The proposed combination with Banco BPM and Banca Generali, if successful, would create Italy's third-largest banking group. However, the path forward faces potential hurdles, as evidenced by the earlier termination of merger talks with Banco BPM after opposition from its main investor, Credit Agricole.