Over 90% of Monte dei Paschi (MPS) shareholders voted against CEO Luigi Lovaglio’s proposal to launch twin bids for Banco BPM and Banca Generali, reported Bloomberg.
The proposals were intended to provide an alternative strategy as Intesa seeks to acquire Monte Paschi.
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Lovaglio’s plan involves two separate all-share takeover bids by MPS for wealth manager Banca Generali and rival lender Banco BPM.
MPS set out plans to acquire Banco BPM and Banca Generali in two separate share-based offers worth a combined €34bn ($40bn).
Intesa must still obtain antitrust approval and secure shareholder acceptance of its offer. Delfin, which holds 17.6% of Monte Paschi, has already pledged its shares to Intesa.
“The game isn’t over,” Lovaglio said at the investor meeting.
“We thought we would be able to go onto the field and play the game. We weren’t able to because of Intesa’s ultimatum.”
Last month, Intesa Sanpaolo received prior approval from the European Central Bank (ECB) to acquire a direct controlling shareholding in MPS.
The ECB approval also covers indirect controlling shareholdings in Wise Dialog, Mediobanca – Banca di Credito Finanziario, Mediobanca Premier, and Compass Banca. It additionally applies to an indirect qualifying holding in Banca Progetto.
Earlier this month, Intesa Sanpaolo increased its offer for Monte dei Paschi di Siena (MPS), offering shareholders an additional €800m ($900m) in cash if they vote against the bank’s alternative plan.
The revised terms include €1.25 in cash for every MPS share tendered, up from €1 previously offered.
Shareholders would also receive 1.6 newly issued Intesa shares for each MPS share. Intesa announced the original €30bn share-and-cash proposal in June.
