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Reuters
06-08-2025
- Business
- Reuters
Mediobanca suitor Monte dei Paschi raises outlook after strong quarter
MILAN, Aug 6 (Reuters) - Italy's Monte dei Paschi di Siena ( opens new tab on Wednesday raised its profit forecast for the year after much higher than expected second-quarter profit and said it was determined to buy bigger rival Mediobanca ( opens new tab. Monte dei Paschi's (MPS) 16 billion euro ($19 billion) all-share buyout offer for Mediobanca, which runs until September 8, is one of a dozen takeover bids reshaping Italian banking. Capital reserves, which MPS can tap to sweeten its offer, increased sharply in the quarter. CEO Luigi Lovaglio ruled out the idea of MPS abandoning the bid, given Mediobanca's strong opposition, and reviving instead an earlier project to combine with Banco BPM ( opens new tab, which has recently freed itself from UniCredit's ( opens new tab grip. "We're quite determined ... to build the third competitive force in the Italian landscape," Lovaglio told analysts. BPM said on Tuesday it could look at MPS, of which it already owns 9%, as it weighs tie-up options, but only after the Mediobanca bid concludes. MPS said net profit in the three months through June totalled 479 million euros ($554 million), compared with a 349 million euro forecast in a company-provided analyst consensus. At 1.05 billion euros, revenues were up 4% versus the previous quarter, with trading income jumping by a third, net interest income up despite falling rates, and net fees also rising. Analysts had looked for revenues of 982 million. MPS was rescued by the state in 2017 and has since restructured under Lovaglio. Like other Italian lenders, it has seen earnings lifted by higher interest rates in recent years, while also benefiting from the release of cash set aside against legal risks after favourable court rulings. With profits recovering after years of losses, MPS has been able to tap into tax credits to support earnings. It is counting on such a boost to reward Mediobanca's shareholders once it can add the target's income to its own accounts. MPS said its core capital ratio stood at 19.6% of assets, one of the highest in the industry, which could give it room to improve the Mediobanca bid. To fight MPS' offer, Mediobanca is attempting to buy private bank Banca Generali and has called a shareholder vote on August 21 on the plan. It had been forced to postpone an earlier vote for fear it would fail to receive sufficient investor support. ($1 = 0.8639 euros)
Yahoo
06-08-2025
- Business
- Yahoo
Mediobanca suitor Monte dei Paschi raises outlook after strong quarter
By Valentina Za MILAN (Reuters) -Italy's Monte dei Paschi di Siena on Wednesday raised its profit forecast for the year after much higher than expected second-quarter profit and said it was determined to buy bigger rival Mediobanca. Monte dei Paschi's (MPS) 16 billion euro ($19 billion) all-share buyout offer for Mediobanca, which runs until September 8, is one of a dozen takeover bids reshaping Italian banking. Capital reserves, which MPS can tap to sweeten its offer, increased sharply in the quarter. CEO Luigi Lovaglio ruled out the idea of MPS abandoning the bid, given Mediobanca's strong opposition, and reviving instead an earlier project to combine with Banco BPM, which has recently freed itself from UniCredit's grip. "We're quite determined ... to build the third competitive force in the Italian landscape," Lovaglio told analysts. BPM said on Tuesday it could look at MPS, of which it already owns 9%, as it weighs tie-up options, but only after the Mediobanca bid concludes. MPS said net profit in the three months through June totalled 479 million euros ($554 million), compared with a 349 million euro forecast in a company-provided analyst consensus. At 1.05 billion euros, revenues were up 4% versus the previous quarter, with trading income jumping by a third, net interest income up despite falling rates, and net fees also rising. Analysts had looked for revenues of 982 million. MPS was rescued by the state in 2017 and has since restructured under Lovaglio. Like other Italian lenders, it has seen earnings lifted by higher interest rates in recent years, while also benefiting from the release of cash set aside against legal risks after favourable court rulings. With profits recovering after years of losses, MPS has been able to tap into tax credits to support earnings. It is counting on such a boost to reward Mediobanca's shareholders once it can add the target's income to its own accounts. MPS said its core capital ratio stood at 19.6% of assets, one of the highest in the industry, which could give it room to improve the Mediobanca bid. To fight MPS' offer, Mediobanca is attempting to buy private bank Banca Generali and has called a shareholder vote on August 21 on the plan. It had been forced to postpone an earlier vote for fear it would fail to receive sufficient investor support. ($1 = 0.8639 euros) Sign in to access your portfolio
Reuters
06-08-2025
- Business
- Reuters
Mediobanca suitor Monte dei Paschi posts strong earnings
MILAN, Aug 6 (Reuters) - Italy's Monte dei Paschi di Siena ( opens new tab on Wednesday posted much higher than expected second-quarter profit as it seeks to take over bigger rival Mediobanca ( opens new tab. Monte dei Paschi's (MPS) buyout offer for Mediobanca, which runs until September 8, is one of a dozen takeover offers reshaping Italian banking. Capital reserves, which MPS can tap to sweeten its offer, increased sharply in the quarter. MPS said net profit in the three months through June totalled 479 million euros ($554 million), compared with a 349 million euro forecast in a company-provided analyst consensus. At 1.05 billion euros, revenues were up 4% versus the previous quarter with trading income jumping by a third, net interest income up despite falling rates and net fees also rising. Analyst had looked for revenues of 982 million. MPS was rescued by the state in 2017 and has since restructured under CEO Luigi Lovaglio. ($1 = 0.8639 euros)
Reuters
24-07-2025
- Business
- Reuters
Italy's MPS focused on Mediobanca deal, CEO says after UniCredit drops BPM bid
MILAN, July 24 (Reuters) - Italy's Monte dei Paschi ( opens new tab is focused on its takeover offer for Mediobanca ( opens new tab, its chief executive said on Thursday, adding further deals would be something the state-backed bank could consider only in the future. In a television interview with Class CNBC, Monte dei Paschi (MPS) CEO Luigi Lovaglio was asked about the implications for MPS of UniCredit ( opens new tab ditching its buyout offer for Banco BPM ( opens new tab. Banco BPM acquired a stake in MPS in November, just before UniCredit's swoop. It has long been seen as the government's favourite merger partner for MPS. UniCredit's withdrawal has revived speculation about a BPM-MPS tie-up becoming a possibility. "We are focused on the Mediobanca deal," Lovaglio said when asked if he had spoken to Banco BPM CEO Giuseppe Castagna after UniCredit's decision to abandon the bid. Lovaglio reiterated his view that the combination with Mediobanca would give MPS a scale that would allow the Tuscan bank to take part in a second round of consolidation that Lovaglio sees taking place in a couple of years. "Once we close this deal we'll have excess capital which one can use either for a deal or to give it back to shareholders, we'll assess it then," he said. He also ruled out an improvement of the price of the Mediobanca bid. "The price offered is fair if you take into account the current valuation of the two companies and the fact that after the deal there will certainly be a major re-rating," Lovaglio said. He expressed confidence that take-up of the bid would reach the targeted threshold of 66.7%, even though MPS set the minimum threshold at 35%, which it considers sufficient to control the rival. Mediobanca this month renewed its opposition to the takeover offer, saying the price was "totally inadequate" and around a third lower than what the bank's board deemed fair.
Yahoo
24-07-2025
- Business
- Yahoo
Monte dei Paschi not considering raising Mediobanca bid, CEO says
MILAN (Reuters) -Italy's Monte dei Paschi is not considering improving its all-share bid for Mediobanca as the current price is fair, the Tuscan bank's chief executive said in an interview with Class CNBC on Thursday. "The price offered is fair if you take into account the current valuation of the two companies and the fact that after the deal there will certainly be a major re-rating," MPS CEO Luigi Lovaglio said. He reaffirmed that he is confident that the bank can get a stake of over 67% of Mediobanca, even though the minimum threshold was set at 35%, which was considered sufficient to control the rival bank. Mediobanca this month renewed its opposition to the takeover offer, saying the price was "totally inadequate" and around a third lower than what the bank's board deemed fair. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
