Banco BPM's board of directors unanimously postponed its decision on Monte dei Paschi di Siena's public takeover bid, stating that the offer does not include a premium for Banco BPM shareholders. The board highlighted that the proposed deal, which values Banco BPM at EUR25.3 billion, is an acquisition rather than a merger of equals, a significant departure from Banco BPM's earlier proposal to Monte dei Paschi in June 2026. This distinction is critical as it implies an absorption of one bank by another, with the bidder controlling terms and potentially unequal distribution of synergies, rather than a governance-sharing structure typically seen in Italian bank combinations.
Banco BPM had previously approached Monte dei Paschi for a merger, but these discussions failed to reach a mutually agreed deal, partly due to reluctance from Banco BPM's largest shareholder, Credit Agricole. The current offer from Monte dei Paschi involves exchanging 1.567 newly issued shares for each Banco BPM share, without any premium over the market price. The Milanese bank's board emphasized that the offer was unsolicited and not previously agreed upon, reserving the right to conduct a more thorough evaluation.
This development comes amidst a broader landscape of consolidation in Italian banking. Intesa Sanpaolo is also pursuing a takeover bid for Monte dei Paschi, with proxy advisers like ISS and Glass Lewis recommending shareholders vote in favor of Intesa's capital increase. Meanwhile, Generali is set to review Monte dei Paschi's bid for Banca Generali, which could lead to a bancassurance alliance and cross-shareholdings. The Italian Ministry of Economy and Finance has stated it will not sell its 4.8% stake in Monte dei Paschi, further complicating the competitive bids.
