Business · Companies · 2 hrs ago
Monte dei Paschi shareholders clear path for Intesa Sanpaolo takeover bid
Monte dei Paschi shareholders rejected the bank’s defence plan, clearing a path for a takeover offer from Intesa Sanpaolo.
The dispute concerns two Italian banks: Monte dei Paschi, based in Siena, and Intesa Sanpaolo, the country’s market leader.
Monte dei Paschi was rescued by the Italian state in 2017 after a crisis involving bad loans and scandals, and later took control of Milan-based Mediobanca.
The vote also blocks plans by Monte dei Paschi’s leadership to pursue other acquisitions and combine more closely with Mediobanca.
Intesa Sanpaolo’s offer is worth €31.4 billion, according to one account, and its submission is expected in the second half of November.
If successful, the deal would create the eurozone’s second-largest listed banking group.
The vote is a setback for Rome’s efforts to shape Italy’s banking sector, as shareholders backed the market-led takeover route.
Monte dei Paschi di Siena shareholders rejected the bank’s defence plan, clearing the way for Intesa Sanpaolo to submit a takeover offer.
The shareholders rejected the plan with 90 percent of the votes at an extraordinary meeting.
Intesa Sanpaolo made a hostile offer in June valued at 31.4 billion euros, according to NZZ.
The offer had already been approved by the European Central Bank, NZZ reported.
Intesa Sanpaolo is Italy’s largest bank, while Monte dei Paschi is the world’s oldest bank.
- Who
- Monte dei Paschi di Siena shareholders rejected the bank’s defence plan. Intesa Sanpaolo is seeking to take over the bank.
- What
- Shareholders cleared the way for Intesa Sanpaolo to submit a takeover offer.
- When
- The vote took place on Thursday, October 29, according to Le Monde. Intesa was expected to submit its offer in the second half of November.
- Where
- Siena, Italy.
- Why
- Shareholders rejected the defence plan, removing an obstacle to the offer. NZZ said the European Central Bank had already approved it.
Monte dei Paschi management
Monte dei Paschi shareholders and Intesa Sanpaolo
Defence of the bank
Monte dei Paschi management
CEO Luigi Lovaglio sought to block Intesa’s offer with a defence strategy.
Monte dei Paschi shareholders and Intesa Sanpaolo
Shareholders rejected the defence strategy, clearing the way for Intesa’s offer.
Proposed direction
Monte dei Paschi management
Lovaglio proposed a counteroffer for Banco BPM and Banca Generali and a merger with Mediobanca.
Monte dei Paschi shareholders and Intesa Sanpaolo
Shareholders blocked the planned Mediobanca merger; Intesa is pursuing a takeover of Monte dei Paschi.
Intesa Sanpaolo made a hostile takeover offer for Monte dei Paschi valued at 31.4 billion euros, according to NZZ.
Monte dei Paschi shareholders rejected CEO Luigi Lovaglio’s defence plan with 90 percent of the votes.
Intesa Sanpaolo was expected to submit its takeover offer.
- Intesa offer
- 31.4 billion euros
- Shareholder vote
- 90 percent rejected the defence plan
- Meeting location
- Siena, Italy
- Target bank
- Monte dei Paschi di Siena
- Prospective buyer
- Intesa Sanpaolo
3 sources
What people are saying
The banks in Italy have lost their minds.
fights that really remind me of the Wild West
After years of stagnation, the banks are finally moving.