Intesa Sanpaolo has launched an unsolicited bid of 30.6 billion euros ($35.3 billion) for Monte dei Paschi di Siena (MPS), presenting a 12.5% premium over MPS's recent closing share price. This move directly counters Banco BPM's recent announcement of its interest in a 'merger of equals' with MPS.
The valuation of MPS stands at 27.4 billion euros, and the bank has been a focal point for consolidation since its re-privatization in 2023 following a state bailout in 2017. The competitive dynamics are further complicated by Credit Agricole's support for Banco BPM, indicating potential backing for the merger discussions.
Following these developments, shares of Intesa and Banco BPM fell by 4% and 1.1%, respectively, while MPS shares saw a slight increase of 0.9% in early trading on Monday. This bidding war is significant as it could reshape the landscape of the Italian banking sector, potentially creating Europe's second-largest bank by market capitalization