Monte dei Paschi Bids €34 Billion for Banco BPM and Banca Generali

Banca Monte dei Paschi di Siena SpA announced all-share bids to acquire Banco BPM SpA and Banca Generali SpA for a combined total of approximately €34 billion. The offers value Banco BPM at €25.3 billion and Banca Generali at €8.7 billion.

Chief Executive Officer Luigi Lovaglio is orchestrating the move to create a national champion with a €70 billion valuation. This strategy serves as a defense against a pending takeover bid from Intesa Sanpaolo SpA, which valued Monte Paschi at roughly €36 billion approximately two months ago.

To fund the plan, Monte Paschi intends to pay an additional €4 billion dividend using cash and shares from its stake in Assicurazioni Generali SpA. The bank will seek shareholder approval for the acquisitions at a meeting on October 29, with an expected completion date in mid-February.

The deals face significant hurdles, including the requirement for two-thirds investor support under Italian passivity rules and the necessary approval of major stakeholders such as Generali.