Italy’s Intesa Sanpaolo has increased the cash component of its takeover offer for rival Monte dei Paschi di Siena (MPS), offering shareholders an additional €800 million if they reject MPS management’s alternative expansion plans.
Under the revised proposal, Intesa will offer €1.25 in cash and 1.6 newly issued Intesa shares for each MPS share, up from the previous €1 cash component. The deal was initially valued at about €34 billion and is the largest transaction in Italy’s recent wave of banking consolidation.
The move comes ahead of an October 29 shareholder vote at MPS on plans backed by Chief Executive Luigi Lovaglio. His strategy involves MPS pursuing separate all-share takeover offers for wealth manager Banca Generali and rival lender Banco BPM.
Intesa has warned that if MPS shareholders approve either of those proposed acquisitions, it could declare its own takeover offer ineffective and withdraw the bid.
The dispute reflects the wider consolidation of Italy’s banking sector, where lenders are seeking to expand their scale and strengthen their positions through mergers and acquisitions.
The outcome of the MPS shareholder vote will therefore play a key role in determining whether Intesa’s proposed takeover proceeds or whether MPS continues with its own expansion strategy.
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