MPS Bids €34bn for Banco BPM and Banca Generali
The Italian bank aims to counter Intesa Sanpaolo's takeover bid and create a new European banking giant with a pro forma market capitalisation of around €80 billion
MPS has prepared twin bids for Banco BPM and Banca Generali, worth around €34 billion, to counter Intesa Sanpaolo's takeover bid and create a new Italian bank with European weight. The overall proposal has an estimated value of around €34 billion.
The total consideration for Banco BPM is €25.3 billion, with an exchange ratio of 1.567 Mps shares for each share tendered. The offer for Banca Generali is worth €8.72 billion, with the exchange set at 6.958 Mps shares.
The combined group made up of Mps, Banco BPM and Banca Generali would have a pro forma market capitalisation of around €80 billion. This would rank the group among the top ten European banks and in the second place in Italy for customer loans and branch network.
The largest shareholders of Mps are the Del Vecchio family, the Caltagirone group, the BlackRock fund, the Ministry of Economy and Finance, and Banco BPM. Crédit Agricole holds almost one third of the share capital of Banco BPM.
## Why it matters The bid is a direct response to Intesa Sanpaolo's takeover bid for Mps. If successful, the combined group would be a major player in the European banking landscape. The presence of France's Crédit Agricole in Banco BPM adds a further layer of complexity to the deal. The outcome of the bid will have significant implications for the Italian banking system and the European financial landscape.
The bid is subject to the approval of Mps shareholders, who have already gathered in an extraordinary general meeting to discuss the proposal. The largest shareholders, including the Del Vecchio family and the Caltagirone group, will play a crucial role in determining the outcome of the bid.
## What happens next The bid is expected to be closely watched by regulators and investors. The outcome will depend on a range of factors, including the response of Intesa Sanpaolo and the approval of Mps shareholders. If successful, the combined group would be a major player in the European banking landscape, with significant implications for the Italian banking system and the European financial landscape.
