MPS Launches €13.3 Billion Hostile Takeover Bid for Mediobanca, Aiming for Third-Largest Bank

Jan 24, 2025, 09:16 AM

Banca Monte dei Paschi di Siena (MPS) has launched a €13.3 billion takeover bid for Mediobanca, aiming to create Italy's third-largest banking group. The offer, which values Mediobanca at 13.3 billion euros, proposes a 5.03% premium over the closing price of Mediobanca shares on the previous day. MPS plans to offer 23 of its shares for every 10 shares of Mediobanca. The move is seen as a strategic effort to consolidate Italy's banking sector, with MPS stating that the merger would generate significant synergies and enhance profitability. The Italian government, holding an 11.7% stake in MPS, has been involved in the bank's search for new partners following a bailout in 2017. Key shareholders in both banks, including Delfin and Francesco Gaetano Caltagirone, are pivotal in this operation, with Delfin holding a 9.8% stake in MPS and a 19.8% stake in Mediobanca, while Caltagirone holds 5% in MPS and 7.8% in Mediobanca. The takeover bid is considered hostile by Mediobanca's management, and it could impact the control dynamics of Assicurazioni Generali, where Mediobanca is a major shareholder.