Mediobanca-MPS Takeover Battle Escalates as Milan Mayor Backs Target
Milan mayor Giuseppe Sala has aligned with Mediobanca in the ongoing takeover battle initiated by state-backed Monte dei Paschi di Siena (MPS). His support signifies the increasing political overtones of the financial saga.
MPS's €13.3 billion all-share bid for Mediobanca has disrupted Italy's financial landscape, pitting a troubled lender against a respected industry veteran. Sala, a former corporate executive, expressed concerns about the deal in an interview with SkyTg24 television.
"There's a clear lack of strategic rationale in the deal, except for the government's involvement, which raises concerns," Sala stated. "MPS was recently rescued with Italian taxpayers' money, and now the government is supporting its takeover without a clear purpose."
The bid follows the acquisition of significant MPS stakes by Delfin and Roman construction magnate Francesco Gaetano Caltagirone, who are close to Prime Minister Giorgia Meloni. Delfin and Caltagirone are known for their opposition to Mediobanca CEO Alberto Nagel and allege his reliance on income from the company's Generali stake.
"It's evident that this isn't solely about Mediobanca but also Generali," Sala observed.
Despite their political differences, Economy Minister Giancarlo Giorgetti, a member of Sala's opposing League party, has expressed support for the MPS bid, suggesting it could strengthen Italy's banking sector and economy. This support somewhat undermines accusations of a regional divide in the takeover battle.