Mediobanca Rejects MPS Takeover Bid

Milan: The board of Mediobanca on Tuesday rejected a 13-billion-euro takeover bid launched by domestic rival Monte dei Paschi (MPS) saying it was strongly destructive of value, according to a note issued by the lender led by CEO Alberto Nagel. The statement said the offer was considered “hostile and against Mediobanca’s interests”.

According to Ansa News Agency, the bid was assessed as lacking “industrial and financial rationale and therefore destructive of value” by Mediobanca’s board. The rejection underscores the board’s concern over maintaining the bank’s strategic direction and shareholder value.

Mediobanca also highlighted in the statement the “relevant cross-shareholdings of Delfin and Caltagirone” in the lender, Monte dei Paschi, and Italian insurer Assicurazioni Generali. This, they argued, could represent a “potential misalignment of interests regarding other shareholders” as part of the takeover bid.

In a surprise move, the bailed-out Monte dei Paschi di Siena, the world’s oldest bank, launched last Friday a 13.3 billion euro all-share buyout bid for Mediobanca. The offer included 23 of its own shares for every 10 Mediobanca shares, which represented a 5% premium on the previous night’s closing price.

In a note issued announcing the bid, MPS stated that a union with Mediobanca would create “a new national champion in the Italian banking sector.” The proposed merger aimed to position the new entity as a leader in key banking segments with a robust combination of products and services, characterized by a highly diversified and resilient business mix, with relevant industrial synergies.