Background on Monte dei Paschi and Mediobanca
Monte dei Paschi (MPS), one of the world’s oldest banks founded in 1472, has taken control of its rival Mediobanca following the completion of a hostile public acquisition offer. The Italian bank now controls 62.3% of Mediobanca’s shares, as announced by both Ansa and Radiocor.
Hostile Offer and Improvement
MPS’s initial offer was deemed hostile by Mediobanca’s board, who considered it “inadequate” and “lacking industrial logic.” However, MPS improved its offer on September 2nd by adding €0.90 in cash per share.
MPS’s Recent Struggles and State Rescue
Historically facing difficulties, MPS surprised many by launching a takeover bid for Mediobanca in January, when its market capitalization was significantly lower than that of its target. In 2017, MPS was on the brink of collapse and had to be rescued by the Italian government, which became its largest shareholder.
Impact and Government Support
The acquisition of Mediobanca by MPS has the backing of the Italian government, which aims to create a major banking group capable of competing with Intesa Sanpaolo and UniCredit. Vice Prime Minister Matteo Salvini hailed the move as a “historic day for Italy’s financial sector,” expressing pride in contributing to the rescue and revitalization of MPS.
Potential Consequences for Mediobanca’s Board
Mediobanca’s board, which viewed the offer as inadequate, may be compelled to resign following MPS’s successful takeover. This development could lead to significant changes within Mediobanca, as the new majority shareholder, MPS, may implement its own strategic vision and leadership.
Key Questions and Answers
- What is Monte dei Paschi (MPS)? MPS is one of the world’s oldest banks, founded in 1472. It has faced financial difficulties in the past and was rescued by the Italian government in 2017.
- Why is this acquisition significant? The acquisition of Mediobanca by MPS creates a new competitive force in the Italian banking sector, offering a broad and diverse range of products and services for families, businesses, and territories.
- What was the nature of MPS’s initial offer? MPS’s original offer for Mediobanca was considered hostile by Mediobanca’s board, who deemed it inadequate and lacking industrial logic.
- How did MPS improve its offer? MPS enhanced its offer on September 2nd by including €0.90 in cash per share.
- What is the potential impact on Mediobanca’s board? Following MPS’s successful takeover, Mediobanca’s board may be required to resign, potentially leading to strategic and leadership changes within the acquired company.
