Intesa Sanpaolo Plans 33 Billion Euro Monte Paschi Takeover

Intesa Sanpaolo SpA plans to launch a 33 billion euro takeover bid for Banca Monte dei Paschi di Siena SpA during the final week of November. The tender period is expected to open the week of November 23, pending final approval of the offer prospectus by the Italian securities regulator Consob.

The acquisition follows a decision by Monte Paschi shareholders to reject a standalone strategy proposed by CEO Luigi Lovaglio, which would have seen the bank acquire Banco BPM SpA and Banca Generali SpA. This rejection left the institution open to the bid accelerated by Intesa Sanpaolo CEO Carlo Messina.

A successful transaction would grant Intesa Sanpaolo control over Monte Paschi's substantial holdings, including an 86 percent stake in investment bank Mediobanca and an indirect 13 percent stake in insurer Assicurazioni Generali SpA. While antitrust approval is still pending, it is not required to initiate the transaction. Shares of both institutions rose in Milan following the announcement.