Italian lender Banca Monte dei Paschi di Siena (Mps) makes a defensive move by launching an all-share offer to buy two separate banks—Banco BPM and Banca Generali—for a combined value of about €34 billion.
Mps offers shareholders in Banco BPM a deal valuing the bank at €25.3 billion, and it offers shareholders in Banca Generali a deal valuing that firm at €8.7 billion. The offers are based on the market close from two days prior to the announcement, according to Mps.
The move is framed as a way to prevent Mps from being acquired by rival Intesa Sanpaolo, which is seen as a potential consolidator in Italy’s banking sector. Bloomberg and Euronews both describe the same twin acquisition structure and the stated combined valuation, while differing slightly in emphasis: Bloomberg focuses on the immediate “what’s next” implications of the bid, while Euronews highlights the aim to form a new Italian banking group with wider European presence.
