Italy bank merger wave heats up as Mediobanca eyes Banca Generali

Mediobanca is itself trying to fend disconnected a hostile takeover by state-backed Banca Monte Paschi di Siena (MPS) arsenic the Italian banking manufacture sees a question of hostile bids. Photo: Filippo MONTEFORTE / AFP
Source: AFP

Italian slope Mediobanca, itself battling to fend disconnected a hostile takeover by a rival, announced connected Monday a 6.3-billion-euro ($7.2 billion) bid to bargain wealthiness absorption steadfast Banca Generali.

Mediobanca is readying to usage its 13.1 percent involvement successful Italy's largest security company, Generali, to wage for the acquisition of the radical subsidiary Banca Generali, the connection said.

"The operation betwixt the 2 companies volition nutrient a European marketplace leader," Mediobanca said.

Mediobanca is itself trying to fend disconnected a hostile takeover by state-backed Banca Monte Paschi di Siena (MPS) arsenic the Italian banking industry sees a question of hostile bids.

Mediobanca's connection stipulates that if it does not negociate to get a minimum of 50 percent positive 1 of the full fig of Banca Generali shares, past it would wantonness its takeover bid.

It said the takeover would effect successful its wealthiness absorption revenues doubling to 2 cardinal euros and specified profits expanding fourfold to 800 cardinal euros.

In a statement, it said the acquisition would "transform the narration betwixt Mediobanca and AG from a fiscal to a beardown concern partnership".

In January, Mediobanca rejected a 13.3-billion-euro bid from MPS, which had been backed by Prime Minister Giorgia Meloni's government.

The Mediobanca committee branded the connection "devoid of concern and fiscal rationale" and frankincense "destructive" for the bank.

MPS, the world's oldest bank, had wanted to make a banking radical to rival the 2 biggest successful the country, Intesa Sanpaolo and Unicredit.

MPS was bailed retired by the Italian authorities successful 2017, erstwhile it was connected the verge of bankruptcy, and Rome became its main shareholder.

Banca Generali's shares were up 7.5 percent successful greeting trading portion MPS gained 3.1 percent, Mediobanca roseate 0.6 percent and Generali dropped astir 2 percent.

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Source: AFP