Italy’s Banca Monte dei Paschi di Siena has proposed simultaneous all-share takeover bids for rivals Banco BPM and Banca Generali, along with a special dividend worth approximately €4 billion in total.
Italy’s leading bank, Banca Monte dei Paschi di Siena, made a simultaneous all-share takeover proposal on the 21st for Banco BPM and Banca Generali, valued at approximately €34 billion, in an effort to block moves by Italy’s largest bank, Intesa Sanpaolo. The proposal is expected to further intensify consolidation in the sector.
The proposal also includes a special dividend worth approximately €4 billion in total for shareholders. MPS would acquire both companies by issuing 1.567 new shares for each Banco BPM share and 6.958 new shares for each Banca Generali share. The companies have been assigned enterprise values of approximately €25.3 billion and €8.7 billion, respectively.
If both transactions are completed, Italy’s third-largest banking group by assets would be created, with a pro forma balance sheet of approximately €466 billion and total financial assets of more than €810 billion. Annual pretax synergies are estimated at approximately €2.6 billion.
The bids require approval from shareholders and regulators and are targeted for completion in mid-February 2027.