Monte dei Paschi di Siena, the world's oldest bank, has launched a bold takeover bid for one of Italy's key financial institutions, Mediobanca. The all-share offer, valued at 13.3 billion euros, was announced on Friday, causing immediate ripples across the financial markets. This move underscores the Italian banking sector's escalating merger and acquisition activity. Shares of Monte dei Paschi fell by 5.74% in response, while Mediobanca shares rose by 6.28% as of 09:43 a.m. London time.
The Italian government retains an 11.73% stake in Monte dei Paschi, highlighting its vested interest in the bank's strategic decisions. Monte dei Paschi required a state rescue in 2017 but has since transformed its outlook under the leadership of Luigi Lovaglio, a seasoned executive from UniCredit. The bank's current equity is valued at 8.7 billion euros, while Mediobanca's market capitalization stands at approximately 12.3 billion euros, according to FactSet data.
Monte dei Paschi has set the offer price for Mediobanca's stock at roughly €15.992 each, representing a 5% premium over the closing price on January 23. This strategic bid is seen as a critical step in consolidating Italy's financial system, with the Italian banking union Fabi remarking:
"The transaction could contribute to complete the dynamics of the Italian financial system, in the context of strong consolidation," – Italian banking union Fabi
The move by Monte dei Paschi adds to the increasing merger and acquisition activities within Italy's banking sector. Prior to this, UniCredit made an offer to acquire Banco BPM, which itself seeks to purchase fund manager Anima Holding. Until talks collapsed in 2021, Monte dei Paschi was even considered a potential acquisition target for UniCredit.
This unexpected bid highlights Monte dei Paschi's ambitions under its revitalized strategic direction. The bank's attempt to acquire Mediobanca signals its aim to strengthen its position within Italy's competitive financial landscape and potentially transform into a more formidable entity.