Monte dei Paschi Questions Intesa Sanpaolo's 31.4 Billion Euro Bid
Banca Monte dei Paschi di Siena questioned a sweetened takeover bid from Intesa Sanpaolo while pursuing its own acquisitions of Banco BPM and Banca Generali.
The board of Banca Monte dei Paschi di Siena questioned a sweetened takeover bid from Intesa Sanpaolo following an extraordinary board meeting on Monday. Intesa Sanpaolo increased the cash component of its offer by 0.25 euros per share, bringing the total cash portion to 3.8 billion euros and the total offer value to 31.4 billion euros.
Monte dei Paschi argued that the premium remains below the average for the Italian banking sector. The bank further claimed that the share-heavy nature of the consideration leaves its shareholders overly exposed to the future performance of Intesa Sanpaolo.
To fend off the takeover, Monte dei Paschi launched its own acquisition proposals for Banco BPM and Banca Generali in August, with a combined value of nearly $40 billion. Intesa Sanpaolo has warned it will withdraw its bid if Monte dei Paschi shareholders approve these alternative deals during a vote scheduled for later this month. Monte dei Paschi maintains it will continue to pursue initiatives to maximize shareholder value.
