Delfin Backs Intesa's Sweetened Offer

Delfin, the largest shareholder of Banca Monte dei Paschi di Siena, will tender its full 17.6% stake into Intesa Sanpaolo's takeover offer, bringing Intesa closer to victory in the Italian takeover battle.

The move supports Intesa's sweetened offer, which has been increased by 25 cents per share. This increased offer is conditioned on Paschi shareholders rejecting CEO Luigi Lovaglio's alternative plan.

Delfin's backing of Intesa's offer is significant, as it requires a two-thirds majority to be approved. The government, which owns about 5% of Banca Monte dei Paschi di Siena, has signaled it doesn't intend to intervene in the bank's future.

Other major shareholders, including Francesco Gaetano Caltagirone, who owns about 10% of Banca Monte dei Paschi di Siena, will play a crucial role in the outcome of the takeover bid. Caltagirone has been reported to be opposed to a merger of the Siena bank with Banco BPM.

## What happens next A vote on the takeover is scheduled for October 29. With Delfin's backing, Intesa Sanpaolo is now closer to achieving the required majority, making it more challenging for CEO Luigi Lovaglio to win approval for his alternative strategy. Lovaglio will need to assemble a broad coalition of other investors to reach the two-thirds majority required to keep his bids alive.

## Why it matters The outcome of the takeover bid will determine the future of Banca Monte dei Paschi di Siena. The stakes are high, with the October 29 vote effectively becoming a choice between Intesa's takeover offer and Lovaglio's alternative plan. The decision will have significant implications for the bank's shareholders, employees, and the Italian banking sector as a whole.