Monte dei Paschi di Siena SpA has launched an unsolicited takeover bid for Banco BPM SpA and Banca Generali SpA, valuing the combined entities at approximately €34 billion based on August 19 share prices.
The proposal, announced on Tuesday, values Banco BPM at €25.3 billion and Banca Generali at €8.7 billion. The offer for Banco BPM includes no premium, aligning with its market valuation at the time of the bid. Banca Generali’s shareholders would receive a 10% premium under the terms.
If completed, the deal would create Italy’s third-largest bank by assets, reshaping the country’s financial landscape. The move also positions Monte Paschi to counter a competing bid from Intesa Sanpaolo SpA, Italy’s largest lender, which has proposed its own acquisition of Monte Paschi.
Banco BPM confirmed receipt of the unsolicited offer, noting it had not been negotiated in advance. The bank’s board said it would evaluate the proposal in accordance with legal requirements and disclose its findings within the applicable timeframe.
Giuseppe Castagna, CEO of Banco BPM, had previously proposed a merger of equals to Monte Paschi, though that initiative was withdrawn prior to the current bid.
