Monte dei Paschi CEO to unveil plan to fend off Intesa's €36 billion bid

• MPS acquired a €8.5 billion stake in Generali through its 2025 hostile takeover of Mediobanca, which could be sold or traded to boost shareholder returns, though CEO Lovaglio has previously ruled out disposing of it
• Intesa plans to retain Mediobanca, the Generali stake, and roughly half of MPS's branch network, selling the other half to address antitrust concerns—a plan Lovaglio criticizes as value-destructive
• The takeover battle unfolds as Italian banking consolidates, with UniCredit simultaneously pursuing Germany's Commerzbank, and MPS having recently completed a turnaround from state rescue in 2017 to reprivatization in 2023-2024

Monte dei Paschi CEO Prepares Defense Against €36 Billion Intesa Takeover Bid

Monte dei Paschi di Siena (MPS) CEO Luigi Lovaglio is presenting a counter-strategy to the bank's board on Thursday to fend off a €36 billion unsolicited takeover bid from larger rival Intesa Sanpaolo. The board meeting commenced at 0700 GMT on August 20.

Key Strategic Assets:

MPS holds a valuable 13% stake in Generali, Italy's largest insurer, worth €8.5 billion at current market prices. This stake was acquired through MPS's €16 billion hostile takeover of Mediobanca in 2025. While analysts suggest MPS could sell or trade the Generali stake to enhance shareholder returns, sources familiar with Lovaglio's plans have ruled out disposing of this asset.

Failed Alternative:

MPS previously explored a merger with Banco BPM to block Intesa's bid, but talks collapsed on July 31 after BPM's main investor, France's Credit Agricole, rejected the proposal.

Intesa's Break-Up Plan:

Under Intesa's proposal, the acquirer would retain Mediobanca, the Generali stake, and approximately half of MPS's branch network, while selling the remaining branches to satisfy antitrust requirements. Lovaglio has criticized this approach as value-destructive, and Prime Minister Giorgia Meloni has expressed hope that MPS remains independent, though maintaining the government is not actively intervening.

Market Context:

This consolidation wave follows years of Italian banking sector restructuring. MPS, once a state-rescued institution in 2017 and reprivatized in 2023-2024, exemplifies the sector's turnaround. Meanwhile, UniCredit, Italy's second-largest bank, is pursuing Germany's Commerzbank and has also accumulated a stake in Generali as a financial investment.