Shares in Banca Generali advanced 1% on Wednesday as Monte dei Paschi di Siena (MPS) CEO Luigi Lovaglio explored alternative consolidation options to Intesa Sanpaolo’s unsolicited €30.6 billion takeover bid.
Lovaglio is developing two potential share-swap offers targeting Banco BPM and Banca Generali, according to sources cited by Italian financial media. The MPS board has not yet been formally briefed on the proposals, though directors close to the CEO have been alerted to a possible imminent meeting.
Intesa Sanpaolo launched its takeover attempt in June, proposing a deal that would include divesting half of MPS’s branches, its Siena headquarters, and its brand to Unipol. The Unipol-BPER combination would absorb these assets, creating a mid-sized lender to compete with Italy’s two dominant banks, Intesa and UniCredit.
MPS, rescued by the Italian state in 2017 and reprivatized in 2023-24, has become Generali’s largest shareholder after acquiring Mediobanca in December, securing a roughly 13% stake in the insurer. The bank, recognized as the world’s oldest, now faces competing strategic visions for its future.
Banco BPM had previously pursued a merger-of-equals with MPS, sparking a bidding war before abandoning its pursuit after Crédit Agricole, its largest shareholder, determined the deal would not create value for BPM shareholders.
Political pressure has intensified, with Prime Minister Giorgia Meloni telling Milano Finanza last week that she hopes MPS would not be “dismembered” by Intesa’s bid. Meloni has repeatedly emphasized using MPS’s reprivatization to foster competition by fostering a third major Italian bank alongside Intesa and UniCredit, positioning MPS as a key asset in that strategy.
