Mediobanca Rejects Monte dei Paschi's $13.9 Billion Takeover Bid

The proposed merger, supported by the Italian government, was dismissed by Mediobanca as financially unsound and damaging to its business model.

Mediobanca's board rejected a surprise €13.3 billion ($13.9 billion) all-share takeover bid from Monte dei Paschi di Siena, citing a lack of financial and industrial rationale.
Monte dei Paschi, Italy's oldest bank, argued the merger would create €700 million ($733 million) in annual synergies and significant profits, but Mediobanca countered it would harm shareholder value and its business identity.
The Italian government, which retains a minority stake in Monte dei Paschi, supports the merger as a means to establish a strong third player in Italy's banking sector alongside Intesa Sanpaolo and UniCredit.
Investor skepticism has led to a decline in Monte dei Paschi's share value, reducing the effective valuation of its offer and raising doubts about the feasibility of the merger.
Key shareholders of both banks, including Delfin and Francesco Gaetano Caltagirone, have significant stakes in related entities, raising concerns about potential conflicts of interest in the proposed deal.