Banca Monte dei Paschi Launches €13.3 Billion Takeover Bid for Mediobanca
Banca Monte dei Paschi di Siena SpA has initiated a €13.3 billion all-share takeover bid for rival Mediobanca SpA, further fueling the consolidation wave in Italy's banking sector.
Monte Paschi proposes exchanging 23 new shares for every 10 Mediobanca shares, valuing the bank at €15.992 per share and representing a 5% premium over Thursday's closing price.
The move adds to a flurry of M&A activity in Italy, with Banco BPM SpA attempting to acquire Anima Holding SpA but subsequently becoming a target for UniCredit SpA.
The situation is influenced by cross-holdings among financial giants, including the Del Vecchios and Francesco Gaetano Caltagirone families, who hold significant stakes in both Monte Paschi and Mediobanca.
The Italian government, as a shareholder in Monte Paschi, seeks to establish a domestic competitor to UniCredit and Intesa Sanpaolo SpA.
The proposed deal would create an entity "ranking among the top three institutions in terms of total assets," according to Monte Paschi. The transaction is expected to generate €300 million in annual cost savings.
Analysts remain cautious, with KBW's Hugo Cruz expressing doubts about the synergy potential between the two banks.
Monte Paschi's market capitalization stands at roughly €8.8 billion, while Mediobanca's market value is approximately €12.7 billion.
Delfin Sarl, controlled by the late Leonardo Del Vecchio's family, holds a 9.8% stake in Monte Paschi and a 19.8% stake in Mediobanca, potentially influencing the outcome of the bid.
Caltagirone owns 7.8% of Mediobanca and 5% of Monte Paschi.
JPMorgan and UBS Group AG are advising Monte Paschi on the bid.