Latest news with #LuigiLovaglio
Mint
2 days ago
- Business
- Mint
Monte Paschi May Lower Threshold for Mediobanca Bid: Repubblica
(Bloomberg) -- Banca Monte dei Paschi di Siena SpA is considering reducing the minimum acceptance rate in its bid to acquire Italian rival Mediobanca SpA, La Repubblica reported on Saturday, citing financial sources it didn't identify. Monte Paschi could reduce the threshold to 51% or lower from the current rate of almost 67%, the newspaper said. Chief Executive Officer Luigi Lovaglio is willing to ease the condition to reflect a widening divergence in the share prices of both banks after Mediobanca's recent rally, according to the report. The changing price dynamic means Monte Paschi would have to offer an additional €2 billion ($2.27 billion) to persuade Mediobanca shareholders to accept at current levels, Repubblica said. A reduction in the acceptance rate to 50% would only require an additional €1 billion, a sum Monte Paschi could handle, it said, citing analysts. Italy's oldest lender made the surprise all-share bid in January in a deal that valued the target at about €13.4 billion at the time. Mediobanca's market capitalization has since risen to more than €17 billion, while Paschi's market value has increased at a proportionally slower rate. The foray is one of a series of overlapping deals currently in play that stand to reshape Italy's financial industry. In late April, Mediobanca itself launched a takeover bid for Banca Generali SpA, the private banking arm of Assicurazioni Generali SpA, as a way to escape from Monte Paschi's clutches. Mediobanca holds 13% of Assicurazioni Generali and the proposed deal would swap its stake in the insurance company for Banca Generali shares. More stories like this are available on
Bloomberg
3 days ago
- Business
- Bloomberg
Monte Paschi May Lower Threshold for Mediobanca Bid: Repubblica
Banca Monte dei Paschi di Siena SpA is considering reducing the minimum acceptance rate in its bid to acquire Italian rival Mediobanca SpA, La Repubblica reported on Saturday, citing financial sources it didn't identify. Monte Paschi could reduce the threshold to 51% or lower from the current rate of almost 67%, the newspaper said. Chief Executive Officer Luigi Lovaglio is willing to ease the condition to reflect a widening divergence in the share prices of both banks after Mediobanca's recent rally, according to the report.
Reuters
09-05-2025
- Business
- Reuters
Mediobanca, Monte Paschi beat profit forecasts as they face off in takeover war
MILAN, May 9 (Reuters) - State-backed Monte dei Paschi di Siena ( opens new tab and Mediobanca ( opens new tab both beat forecasts with quarterly profits on Friday, as they face off in one of the takeover battles rocking Italian finance. To thwart Monte dei Paschi's (MPS) hostile buyout offer, Mediobanca last month unveiled its own acquisition proposal for private bank Banca Generali ( opens new tab, an asset it has long coveted to grow its wealth management business. Mediobanca CEO Alberto Nagel said his experience as an adviser on financial M&A deals proved banks needed a similar culture and a chance to cut costs through overlaps for mergers to work. "In the case of the MPS deal with us, all of that does not happen," he told a post-result press briefing. MPS, where Italy has been successfully scaling back its presence since late 2023 after rescuing it in 2017, proposes combining Mediobanca's wealth management and investment banking businesses with its own commercial network, where the two lenders already partner in consumer finance. It would cross-sell products through branches and use deposits to finance the other activities while keeping the two entities separate to safeguard the Mediobanca brand. On a call with analysts MPS CEO Luigi Lovaglio thanked Nagel for "providing his view of what would work best for MPS" but made clear the bank had other ideas. "We're wide awake and we have our own vision. We like to challenge ourselves with an innovative and transformational deal," he said. To fend off MPS, Mediobanca is proposing to sever its historic ties with Banca Generali's owner Assicurazioni Generali ( opens new tab. It would pay for Banca Generali by distributing the stake that currently makes it the biggest investor in Generali. Generali would end up with around 6.5% of its capital in treasury shares. Mediobanca, Generali and, since last November, MPS all have in common two major shareholders, Italy's Del Vecchio and Caltagirone families, which have clashed with Mediobanca as investors in Generali. A former powerhouse of Italian capitalism as it started as a lender to large companies, Mediobanca would become a major wealth management player focused on top tier clients with Banca Generali, continuing to steer away from commercial banking. In a display of its potential as a partner, MPS grew fees from wealth management and advisory by 21% in the first quarter, helping it to steady revenues year-on-year despite an 8% decline in income from the gap between lending and deposit rates. At 334 million euros, Mediobanca's net profit surpassed a bank-provided analyst consensus of 304 million euros, on a 3% yearly increase in revenues from all its divisions. Its takeover target Banca Generali also reported a better-than-expected quarterly net profit. The private bank said the positive result, achieved despite the strong market volatility and a sharp decline of equity indexes, reflected the solidity of its business. It also appointed Deutsche Bank as financial adviser for Mediobanca's offer. MPS posted a 24% yearly profit rise to 413 million euros ($464 million), well above the bank-provided 341 million euro forecast, with costs and loan loss provisions declining. MPS' core capital ratio strengthened further to 19.6% of assets, one of the highest in the sector. ($1 = 0.8908 euros)
Reuters
17-04-2025
- Business
- Reuters
Monte dei Paschi recovers from near collapse to bid for Mediobanca
SIENA, Italy, April 17 (Reuters) - Shareholders in Monte dei Paschi di Siena (MPS) ( opens new tab on Thursday approved a new share issue needed to finance a hostile 12 billion euro ($14 billion) buyout offer for Mediobanca ( opens new tab. MPS unveiled the surprise all-share bid in January, shocking Italian finance with a bold move that pitted a lender that for a decade had epitomised the country's banking woes against a former powerhouse that long pulled the strings of Italian capitalism. Here is a timeline of key events in the recent history of MPS, which was founded in 1472. NOVEMBER 2007 - MPS spends 9.9 billion euros in cash to buy Antonveneta from Santander ( opens new tab, which had bought it only months earlier for 6.6 billion. JANUARY 2008 - MPS funds the Antonveneta deal by issuing 5.95 billion euros in equity, 2.16 billion in junior debt and a 1.56 billion euro bridge loan. MARCH 2009 - MPS sells 1.9 billion euros in special bonds to Italy's Treasury to shore up its finances. JULY 2011 - MPS raises 2.15 billion euros in a rights issue ahead of European banking stress test results. SEPTEMBER 2011 - The Bank of Italy provides 6 billion euros in emergency liquidity to MPS as the euro zone sovereign crisis escalates. MARCH 2012 - MPS posts a 4.7 billion euro 2011 loss after goodwill writedowns on deals including Antonveneta. JUNE 2012 - MPS asks Italy's Treasury to underwrite up to another 2 billion euros in special bonds. OCTOBER 2012 - Shareholders approve a 1 billion euro share issue targeting new investors. JUNE 2014 - MPS raises 5 billion euros in a rights issue and repays the state 3.1 billion euros. OCTOBER 2014 - MPS emerges as the worst performer in Europe-wide banking stress tests. JUNE 2015 - MPS raises 3 billion euros in a share issue and repays the remaining 1.1 billion euro state underwritten special bond. JULY 2016 - MPS announces a new 5 billion euro rights issue and plans to offload 28 billion euros in bad loans. DECEMBER 2016 - MPS turns to the state for help under a precautionary recapitalisation scheme after its cash call fails. JULY 2017 - After the ECB declares MPS solvent, the EU Commission clears an 8.2 billion euro bailout which hands the state a 68% stake at a cost of 5.4 billion euros. OCTOBER 2019 - MPS completes Europe's biggest bad loan securitisation deal. JULY 2021 - UniCredit ( opens new tab enters exclusive talks to buy "selected parts" of MPS, a day before European banking stress test results show the latter's capital would be wiped out in a slump. OCTOBER 2021 - Talks with UniCredit collapse. FEBRUARY 2022 - MPS names veteran UniCredit executive Luigi Lovaglio as CEO. OCTOBER 2022 - MPS raises 2.5 billion euro in a cash call at 2 euros a share to fund 4,000 voluntary staff exits. NOVEMBER 2023 - Italy cuts its MPS stake to 39.2% in a share placement that meets strong demand at a price of 2.92 euros. MARCH 2024 - Investors pay 4.15 euros a share as the Treasury cuts its MPS stake to 26.7%. NOVEMBER 2024 - The Treasury sells 15% of MPS at 5.792 euros a share, bringing onboard construction tycoon Francesco Gaetano Caltagirone, the heirs of late Italian billionaire Leonardo Del Vecchio, mid-sized peer Banco BPM ( opens new tab, fund manager Anima Holding ( opens new tab. JANUARY 2025 - MPS launches an unsolicited buyout offer for Mediobanca, of which Caltagirone and Del Vecchio's heirs own 27%.
Reuters
15-04-2025
- Business
- Reuters
Banco BPM will back Monte dei Paschi's share issue for Mediobanca bid
MILAN, April 15 (Reuters) - Banco BPM ( opens new tab will back a share issue proposed by Tuscan bank Monte dei Paschi di Siena (MPS) ( opens new tab to fund its hostile bid for rival Mediobanca ( opens new tab, a spokesperson for the Italian lender said on Tuesday. Banco BPM, Italy's third-largest bank, holds a 5% stake in MPS, which has made a strong comeback since being bailed out by the government in 2017. here. In January MPS launched a surprise bid for Milan-based Mediobanca, with the aim of combining its own commercial network with its peer's wealth management and investment banking activities. Banco BPM, based in the northern region of Lombardy, said it would vote in favour of issuing the necessary MPS shares in a vote scheduled on April 17, the spokesperson said. The bank will join a core of Italian shareholders who are expected to support the project. However Thursday's vote largely hinges on the stance of dozens of international funds that invested in MPS as the state cut its stake. Advisory group Institutional Shareholder Services has urged shareholders to reject the plan as it leaves "little margin for error", while rival Glass Lewis is in favour of it, saying MPS CEO Luigi Lovaglio's track record provides guarantees for shareholders.
