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Intesa Files €30bn Bid as Banco BPM Plants Rival Offer for Monte dei Paschi

This contest could reshape Italy’s banking market through major branch and asset sales.

Overview

  • Intesa Sanpaolo lodged a formal offer on Monday valuing Banca Monte dei Paschi di Siena at about €30–30.6 billion by offering 1.6 Intesa shares plus €1 cash for each MPS share.
  • Banco BPM presented a competing proposal over the weekend that it calls a merger of equals and says the combined group would have a market value above €50 billion.
  • Intesa announced plans to sell the MPS brand, roughly half the branches, much of the Siena headquarters and other assets to insurer Unipol for about €3–3.5 billion to head off antitrust objections.
  • The bidders have different savings and cost plans: Intesa projects about €2.9 billion in pre-tax synergies and roughly €2.1 billion in integration costs to be realised by 2029, while Banco BPM forecasts about €1.1 billion in pre-tax synergies and a merged net profit near €6 billion.
  • The next steps are a decision by MPS’s board and shareholders followed by regulatory review that will focus on asset carve-outs, local branch impacts and the fate of holdings such as Mediobanca’s stake in Generali.