Banco BPM investor Leone states that any potential MPS deal remains an option only after the Mediobanca offer concludes
In the Italian banking landscape, MPS (Monte dei Paschi di Siena) is currently focused on its ongoing takeover offer for Mediobanca, with CEO Luigi Lovaglio confirming this on Thursday. The proposed deal, worth an estimated $16.9 billion, is a significant move towards consolidation in the sector.
The bid for Mediobanca is not the only consolidation speculation surrounding MPS. The withdrawal of UniCredit's hostile takeover bid for Banco BPM has revived discussions about a possible merger between MPS and Banco BPM. However, any potential tie-up between the two banks is contingent on MPS completing its takeover bid for Mediobanca.
Davide Leone, a significant shareholder in Banco BPM, has warned against making any decisions regarding a potential tie-up before September 8, when MPS's bid for Mediobanca ends. Leone currently owns approximately 8.2% of Banco BPM, but a portion exceeding 5% is due to derivatives used for hedging purposes.
The Italian Treasury has long favoured a combination between MPS and Banco BPM, and Lovaglio has not ruled out future participation in banking consolidation after finishing the Mediobanca offer. Leone's spokesperson has clarified that the derivatives are periodically rolled over.
Banco BPM, in response to the changing market conditions, has stated it will consider strategic options after UniCredit dropped its takeover bid. Any transaction that makes strategic sense will be welcomed, with the possibility of government backing, according to Leone.
The value of MPS cannot be determined without knowing how many shares of Mediobanca it will own following the takeover bid. Lovaglio reiterated that a combination with Mediobanca would give MPS a scale to participate in a second round of consolidation expected within a couple of years.
It's important to note that the potential merger between MPS and Banco BPM is currently on hold and will likely only be considered after the conclusion of MPS's ongoing public exchange offer for Mediobanca, which ends on September 8, 2025.
The value of 1 euro is approximately 0.8648 US dollars.
[1] Source: Reuters [2] Source: Bloomberg [3] Source: Financial Times
- The potential merger between MPS and Banco BPM, which is currently on hold, could lead to significant consolidation in the Italian banking and finance sector.
- Any strategic options Banco BPM considers, including the potential tie-up with MPS, might require the consideration of banking and finance matters such as derivatives and hedging purposes.
