Banco BPM SpA said on Tuesday it had rejected an unsolicited takeover proposal from Banca Monte dei Paschi di Siena SpA to acquire the bank and its wealth unit Banca Generali SpA, citing the lack of a premium for its shareholders.
The board of Banco BPM, Italy's third-largest lender, said the offer—valued at €25.3 billion based on August 19 share prices—did not include any uplift above market value for its investors. The proposal also included Banca Generali, which Monte Paschi valued at €8.7 billion, with an estimated premium of around 10% for its shareholders.
Monte Paschi's bid, announced on August 21, would create the third-largest bank in Italy by assets if completed. The transaction would also likely disrupt Monte Paschi's own planned acquisition by Intesa Sanpaolo SpA, Italy's largest bank. Banco BPM's CEO, Giuseppe Castagna, had previously proposed a merger of equals with Monte Paschi, though that initiative was later withdrawn.
Banco BPM said it would review the proposal and disclose its conclusions within the legal timeframe. The bank did not indicate whether it would consider any revised terms.
