Banca Monte dei Paschi di Siena (BMPS) has announced an enhancement to its public exchange offer for the ordinary shares of Mediobanca, introducing a cash element to the deal.  

The updated proposal from Italy’s BMPS now includes a cash payment of €0.90 per share, complementing the previously declared share exchange offer. 

Citing a source familiar with the matter, Reuters reported that the Mediobanca board is scheduled to convene tomorrow (4 September), to consider the improved proposal. 

Mediobanca has consistently opposed the MPS takeover bid, labelling the price as “totally inadequate”. 

The cash component in the revised offer represents a financial commitment of approximately €750m ($873.6m) from BMPS. 

This adjustment to the offer was approved by the BMPS board, under the leadership of Chairman Nicola Maione, with the aim of enhancing the appeal of the bid. 

In a statement, BMPS said: “The board of directors firmly believes that the increase in the consideration represents a further and concrete evidence of the industrial value of the transaction and the offeror’s attention on the market, with the aim of maximising acceptance of the Offer and accelerating the value creation.  

“The board of directors also confirmed BMPS’s unchanged financial objectives, aimed at maintaining a solid capital position and one of the highest dividend policies in the sector, in the belief that all stakeholders will appreciate BMPS’ commitment and its expected results.” 

The total compensation for each Mediobanca share now comprises 2.533 newly issued BMPS shares, along with the €0.90 cash addition. 

BMPS has also removed the prior requirement for acquiring at least 66.7% of Mediobanca’s voting shares but has upheld a minimum acceptance threshold of 35%, below which the offer will not be pursued. 

The offer evaluates Mediobanca shares at €16.334 each, reflecting an 11.4% premium compared to the share price as of 23 January 2025. 

BMPS said the valuation includes the cash incentive and is calculated based on its share price of €6.093 on the specified reference date. 

The deadline for accepting the offer is set for 8 September 2025. 

A Milan-based trader informed the publication that the revised bid was anticipated, and the market assumes the success of the deal as a given. 

In a recent development, Mediobanca’s shareholders rejected the bank’s proposed €6.3bn acquisition of Banca Generali, which was a setback in its efforts to fend off the hostile takeover by the state-supported BMPS.