Monte dei Paschi Launches Bids to Block Intesa Takeover

Banca Monte dei Paschi di Siena SpA announced that its bids to acquire Banco BPM SpA and Banca Generali SpA are irrevocable and will proceed regardless of whether the lender is acquired by Intesa Sanpaolo SpA. CEO Luigi Lovaglio launched these separate bids in August as a strategic move to block Intesa Sanpaolo's attempt to take over the Siena-based bank.

Monte Paschi estimates the acquisition of Banco BPM would generate annual pre-tax run-rate synergies of 1.4 billion euros, while the Banca Generali deal would provide 400 million euros in synergies. The bids include an implied premium of 3.4 percent for Banco BPM and 12.8 percent for Banca Generali.

Intesa Sanpaolo SpA first offered to buy Monte Paschi in June to expand its investment banking and wealth operations. Intesa plans to launch a formal offer in the fourth quarter, pending regulatory approval. Monte Paschi investors will meet on October 29 to vote on the current acquisition strategy.