Mediobanca Rejects Monte dei Paschi Takeover Attempt
Italy's Mediobanca has rejected a surprise takeover bid from local rival Monte dei Paschi di Siena, stating that the offer lacks "industrial and financial rationale."
Last week, Monte dei Paschi, Italy's oldest bank, proposed a €13.3 billion ($13.9 billion) acquisition of Milan-based Mediobanca, seeking to consolidate Italy's banking sector. The bid promised €700 million ($733 million) in pretax synergies and significant profits.
However, Mediobanca has dismissed the offer as compromising its "identity and business profile" and undermining shareholder value at both institutions. The bank emphasized its focus on "high-value-added business segments with clear growth trajectories."
The buyout attempt follows the Italian government's recent move to privatize Monte dei Paschi, previously troubled and bailed out in 2017. Prime Minister Giorgia Meloni has suggested that a successful merger could create Italy's third-largest bank and enhance "the safeguard of Italians' savings."
Mediobanca's major shareholders are scheduled to review the bid during their regular financial results meeting in April 2024.