Monte dei Paschi di Siena (MPS) has approved bids for Banco BPM and wealth manager Banca Generali in a move to fend off a €36 billion hostile takeover proposal from rival Intesa Sanpaolo.
The board of MPS, the world’s oldest surviving bank, endorsed the acquisitions on Thursday, according to a person familiar with the matter. Italian media reports indicated the proposal from CEO Luigi Lovaglio was approved by a majority but not unanimously. The strategy aims to strengthen MPS’s position against Intesa’s unsolicited bid.
MPS had previously explored a merger with Banco BPM, but talks were terminated on July 31 after Crédit Agricole, the French majority shareholder of BPM, rejected the plan.
The Italian state rescued MPS in 2017 with taxpayer funds and completed its reprivatization in 2024. Banco BPM acquired a stake in MPS in November 2024 as part of the sector’s consolidation efforts. Last year, MPS completed its acquisition of Mediobanca, becoming Generali’s largest investor.
MPS’s actions underscore the ongoing consolidation in Italy’s banking sector amid heightened takeover activity.
