Mediobanca SpA’s CEO has stated that the takeover bid from smaller competitor Banca Monte dei Paschi di Siena SpA was unsolicited, as the Italian investment bank prepares to respond and potentially defend itself. In a letter to staff, CEO Alberto Nagel indicated that the offer has not been accepted and that the board of directors will convene in the coming days to evaluate it and protect the interests of all stakeholders. The board is scheduled to meet on Tuesday to discuss the unexpected bid, according to sources familiar with the situation. The all-share offer values Mediobanca at approximately €12.4 billion ($13 billion) based on Friday’s closing price.
Adding complexity to a potential defense, the Italian government has expressed support for a deal with Monte Paschi, which remains partially state-owned. Nagel mentioned in the letter that Mediobanca will strategize in response to the bid. The Milan-based bank views the offer as hostile, as noted by an anonymous source. A representative from Mediobanca declined to comment on the letter or the upcoming board meeting.
In Milan trading, shares of Monte Paschi fell 2.4% at 9:17 a.m., extending a 6.9% decline from Friday, while Mediobanca saw a slight decrease of 0.2%. Monte Paschi’s unexpected move highlights its significant recovery in recent years under CEO Luigi Lovaglio, following a government bailout in 2009 and subsequent privatization. Prime Minister Giorgia Meloni remarked that Paschi is now “perfectly healed” and ready for ambitious initiatives like the Mediobanca offer. She added that if the deal succeeds, it would be a step towards establishing a third major banking entity in Italy.
Italy has become a focal point for European banking consolidation, particularly following UniCredit SpA’s unsolicited bid for Commerzbank AG in Germany and a subsequent approach for Banco BPM SpA. However, analysts remain skeptical about the feasibility of the Paschi bid. KBW’s Hugo Cruz noted that the deal appears to have “limited chances of success” at first glance. The offer was initially at a 5% premium to Mediobanca’s share price before the announcement, but that advantage diminished as Paschi’s shares dropped 6.9% to €6.49 on Friday, while Mediobanca’s shares rose by 7.7%. In a statement, Paschi indicated that the acquisition would enhance its wealth management operations and reduce annual costs by €300 million.
