Italy will abstain from a shareholder vote at Monte dei Paschi di Siena (MPS) on defensive acquisitions aimed at countering a takeover attempt by rival Intesa Sanpaolo, Economy Minister Giancarlo Giorgetti said on Wednesday.
The decision means the government will not directly support MPS Chief Executive Luigi Lovaglio as he seeks to resist Intesa’s €36 billion unsolicited takeover bid. Italy’s Treasury holds a 4.9% stake in MPS, making it one of the bank’s major shareholders.
MPS, Italy’s third largest bank, has launched separate all share offers worth a combined €34 billion for Banco BPM and Banca Generali. The moves are intended to strengthen the bank’s position against Intesa’s proposed takeover.
Under Italian takeover rules, MPS shareholders must approve the transactions with at least two thirds of the votes cast at an extraordinary meeting scheduled for October 29.
Major MPS shareholders also include businessman Francesco Gaetano Caltagirone and Delfin, the holding company of the Del Vecchio family.
Giorgetti said the government would not participate in the vote and would accept the outcome determined by shareholders and the market.
MPS was rescued by the Italian state in 2017 before being returned to private ownership in 2023 and 2024. Intesa’s takeover proposal would involve breaking up the historic Tuscan lender.
Political leaders in Tuscany and Siena have urged Rome to oppose Intesa’s plan, while Prime Minister Giorgia Meloni has said she hopes MPS will not be broken up. However, she has also indicated that the government will not take an active role in the banking takeover contest.
Italy retains special powers that allow it to block or impose conditions on mergers involving strategic sectors such as banking and insurance. A source familiar with the matter said the government is unlikely to use those powers in the current banking disputes and, if used, would impose only limited conditions.
Leave a comment