.jpg)
5 hours ago
1
Author of the article:
Published Jan 24, 2025 • 1 minute read
ROME (AP) — Italian lender Monte dei Paschi di Siena announced on Friday it was launching a 13.3 billion euro ($13.9 billion) takeover bid for peer Mediobanca in a surprise move that could reshape the country’s banking sector.
Article content
Article content
The offer values Mediobanca’s shares at 15.99 euros each, a 5% premium to their closing price on Thursday.
Monte Paschi currently has a market capitalization of about 9 billion euro, while Mediobanca’s market value is about 12.7 billion euros.
Under the terms of the offer, Mediobanca investors would receive 23 shares in Monte Paschi for every 10 Mediobanca shares they hold.
Advertisement 2
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Monte Paschi said in a statement it expected the tie-up to generate 700 million euros a year in pre-tax synergies. The Tuscan bank added that the deal “aims to deliver significant profitability levels and to maintain a solid capital position.”
The buyout offer comes as the Italian government is moving to re-privatize a bank whose largest shareholder has been the government since a bailout in 2017.
It introduced new shareholders in November that include Delfin, the holding company of late billionaire Leonardo Del Vecchio, and Roman tycoon Francesco Gaetano Caltagirone.
Delfin has tripled its stake in Monte Paschi since November to just under 10%, while Caltagirone holds 5%.
Del Vecchio and Caltagirone are also the largest shareholders in Mediobanca, with combined stakes close to 30%.
Monte Paschi has been successfully overhauled in recent years under CEO Luigi Lovaglio.
The Italian Treasury, which has reduced its stake in Monte Paschi from an intial 68% to 11.7% has been searching for new partners for the lender, after Italy’s UniCredit walked away from a possible deal in 2021.
Article content
English (US)