Intesa Sanpaolo Secures Delfin Sarl Support for Paschi Bid

Intesa Sanpaolo secured the support of Delfin Sarl, the largest shareholder of Banca Monte dei Paschi di Siena, for its tender offer to acquire the bank. Delfin Sarl will back the bid with its 17.6% stake following a decision by Intesa Sanpaolo to increase the cash component of its offer by 25 cents per share.

This sweetened bid is contingent on shareholders rejecting an alternative strategy proposed by Paschi CEO Luigi Lovaglio. Lovaglio intends to acquire Banco BPM SpA and Banca Generali SpA, a plan that requires a two-thirds majority of investor approval in a vote scheduled for October 29.

While the Government of Italy, which holds approximately 5% of Paschi, has signaled it will not intervene in the process, other major shareholders including Francesco Gaetano Caltagirone reportedly oppose the merger with Banco BPM.