Monte Paschi Offers $13.9B for Rival Mediobanca in Italy's Banking Shuffle
Banca Monte dei Paschi di Siena SpA (MPS) has made a surprise $13.9 billion all-share bid to acquire larger competitor Mediobanca SpA, marking the latest chapter in Italy's ongoing banking industry consolidation.
Key Details:
* MPS is offering 23 new shares for every 10 Mediobanca shares, valuing the bank at €15.992 per share.
* The premium offered is 5% above Mediobanca's Thursday closing price.
* Mediobanca's shares jumped 3.8% in Friday's trading, while MPS shares fell 10%.
Analyst Perspective:
Analysts express skepticism about the deal's success, citing limited synergy potential between the two banks.
Context:
This bid comes amidst a flurry of proposed mergers and acquisitions in Italy's banking sector. Banco BPM SpA attempted to acquire Anima Holding SpA but later became a takeover target itself by UniCredit SpA.
Shareholder Dynamics:
* Delfin Sarl, representing the family of late billionaire Leonardo Del Vecchio, holds 19.8% of Mediobanca and 9.8% of MPS.
* Francesco Gaetano Caltagirone owns 7.8% of Mediobanca and 5% of MPS.
* Both families may influence the bid's outcome.
Government Involvement:
The Italian government holds 11.7% of MPS and seeks to use its privatization to create a domestic counterweight to dominant banks like UniCredit and Intesa Sanpaolo.
Potential Outcomes:
* Mediobanca may oppose the bid and consider countermeasures.
* The proposed takeover, if successful, would create a top-three Italian bank by assets and yield €300 million in annual cost savings.
* Shares of both banks have rallied in the past year, with MPS's market cap at $9.2 billion and Mediobanca's at $12.7 billion.
Advisors:
JPMorgan Chase & Co. and UBS Group AG are advising MPS on the deal.