Business · Companies · 12 hrs ago

MPS CEO sticks with takeover plans despite opposition ahead of vote

MPS CEO sticks with takeover plans despite opposition ahead of vote

MPS chief executive Luigi Lovaglio is keeping his proposals for takeover offers and a merger on the agenda for a shareholder meeting on October 29.

The proposals include offers for Banco BPM and Banca Generali, plus a merger with Mediobanca.

Fondaco Lux plans to vote against all five resolutions, including the offers and the merger.

MPS directors backing Lovaglio argued that criticism from proxy advisers focused on uncertainty around the offers, while independent directors raised concerns about execution risks.

About 33% of MPS’s capital has already opposed the plans, and the offers may lack enough support to pass.

Proxy advisers ISS and Glass Lewis oppose the two offers but support the Mediobanca merger; Fondaco also views a separate offer from Intesa Sanpaolo positively for now.

Shareholders will decide at the October 29 meeting, while Fondaco says it will make a final decision on the Intesa offer after reviewing its terms.

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What people are saying

Fondaco LuxAsset manager
On the basis of the information publicly available as of today, it intends to vote against the proposed resolutions under items 1, 2, 3, 4 and 5 on the extraordinary meeting agenda
via Corriere della Sera
the industrial project underlying the offer, aimed at integrating into a larger banking group with a diversified business model, may offer favourable prospects for value creation in the medium to long term
via Corriere della Sera