A control battle has begun between Intesa Sanpaolo and Banco BPM over Italy’s Monte dei Paschi di Siena bank. Known as the world’s oldest bank, Monte dei Paschi has become the target of two major lenders.
On Monday, Intesa Sanpaolo announced an unsolicited offer worth 30.6 billion euros. With this move, the bank aims to outpace its rival and create Europe’s second-largest bank by market value.
Intesa’s offer included a 12.5% premium over Monte dei Paschi’s closing price on Friday. The announcement also stated that Monte dei Paschi di Siena was valued at 27.4 billion euros.
Banco BPM, meanwhile, had announced a day earlier that its board unanimously approved expressing interest in discussing a "merger of equals" with Monte dei Paschi. The bank did not provide details on the merger structure but said both groups would have equal weight in the new company.
Monte dei Paschi di Siena was rescued by a state bailout package in 2017 and was privatized again in 2023. After acquiring Mediobanca last year, the bank became a focal point for further mergers and acquisitions in the Italian banking sector.
This acquisition move gained further attention as Monte dei Paschi also became the largest investor in Generali. This competition in Italian banking has sparked discussions about a new balance of power in the sector.
Banco BPM’s main shareholder, France’s Credit Agricole, also supported the process. The company stated it was interested in exploring value-creating opportunities that could strengthen Banco BPM.
Following these developments, shares of Intesa and Banco BPM fell in the markets. Intesa dropped by 4%, Banco BPM by 1.1%, while Monte dei Paschi shares rose by 0.9% in early trading.
