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Monte dei Paschi Seizes Control of Mediobanca With €16 Billion Offer

Majority acceptances followed MPS's sweetened bid after years of restructuring.

People pass in front of a branch of Monte dei Paschi di Siena (MPS), the oldest bank in the world, in Siena, Italy, August 11 2021. Picture taken August 11, 2021. REUTERS / Jennifer Lorenzini/File Photo
A woman stands in front of the Monte dei Paschi bank in Rome, Italy September 30, 2018. REUTERS/Alessandro Bianchi/File Photo

Overview

  • MPS said 62.3% of Mediobanca’s share capital was tendered by the Sept. 8 deadline, securing majority control.
  • The offer now reopens from Sept. 16 to Sept. 22, with settlement for the initial tenders targeted by Sept. 15 and the second round by Sept. 29.
  • Terms include €0.90 in cash plus 2.533 new MPS shares per Mediobanca share, valuing Mediobanca at €16.334 a share and implying about €750 million in cash outlay and an 11.4% premium to January levels.
  • The bid launched in January faced board resistance at Mediobanca until MPS added the cash component to address concerns that the original all-share proposal was inadequate.
  • MPS’s push follows a financial turnaround highlighted by a €1.95 billion net profit for 2024 and a gradual state stake reduction, while Bloomberg reported CEO Alberto Nagel may depart though no decisions have been announced.