Italy’s government will not proceed with the sale of its 4.8% stake in Monte dei Paschi di Siena until the ongoing takeover battle for the Tuscan lender is settled, Economy Minister Giancarlo Giorgetti said on Tuesday.
The announcement follows Monte dei Paschi’s announcement last week of two concurrent bids totaling approximately €34 billion ($39.7 billion) for rival Banco BPM and wealth manager Banca Generali. The defensive moves aim to counter Intesa Sanpaolo’s hostile takeover attempt, launched in June, which would dismantle Monte dei Paschi as an independent entity.
Giorgetti made the remarks during a meeting in Rome with regional politicians from Siena and Tuscany, who sought clarity on the bank’s future direction. The Italian Treasury’s decision to pause any stake sale underscores the government’s preference for resolving the takeover dispute before proceeding with divestment.
Monte dei Paschi, Italy’s third-largest bank, has framed its bids as a strategic response to preserve its independence and regional presence. The proposed acquisitions would expand its footprint in wealth management and mid-tier corporate lending, areas where Banco BPM and Banca Generali hold significant positions.
The standoff between Monte dei Paschi and Intesa Sanpaolo has intensified scrutiny over Italy’s banking consolidation landscape, with implications for regional financial stability and shareholder value.
