Italian bank Banca Monte dei Paschi di Siena has launched an unsolicited takeover bid for Banco BPM and wealth manager Banca Generali, valuing the combined entities at approximately €34 billion based on August 19 share prices.
The offer for Banco BPM, Italy’s third-largest lender by assets, is structured without a premium to shareholders, aligning the bid closely with the bank’s market valuation of €25.3 billion. In contrast, Monte Paschi proposed an estimated 10% premium for Banca Generali, which is valued at €8.7 billion. Banco BPM’s board stated the bid was not pre-agreed and did not recognize a premium for its shareholders, noting the offer was roughly equivalent to the bank’s prevailing share price.
The proposed transactions would create Italy’s third-largest bank, reshaping the country’s financial landscape. The move also appears designed to preempt a competing bid from Intesa Sanpaolo, Italy’s largest lender, which is currently pursuing its own acquisition of Monte Paschi. Banco BPM’s CEO, Giuseppe Castagna, had previously explored a merger-of-equals proposal with Monte Paschi, though that plan was later withdrawn.
Banco BPM confirmed it would evaluate the unsolicited offer in accordance with legal requirements and publish its assessment in due course. The board did not indicate whether it would support or reject the bid at this stage.
