Banca Monte dei Paschi di Siena (MPS) has encountered significant resistance to its acquisition proposals for Banco BPM and Banca Generali, following formal opposition from a core investor and a refusal by Banco BPM’s top stakeholder to tender its shares.
The developments strengthen the position of Intesa Sanpaolo in its pursuit of Monte dei Paschi.
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Francesco Gaetano Caltagirone’s holding company, FGC, said it will vote against the proposed deals at Monte dei Paschi’s 29 October shareholder meeting. FGC owns 10.26% of the Tuscan lender, as reported by Reuters.
The company will oppose the planned purchases of Banco BPM and Banca Generali, alongside the proposed combination with Mediobanca.
In August, MPS confirmed plans to acquire Banco BPM and Banca Generali in two separate share-based offers worth a combined €34bn ($40bn), as it tries to avoid being taken over by Intesa Sanpaolo.
The offer for Banco BPM values the lender at €25.3bn, while the bid for Banca Generali values it at €8.7bn.
The move follows Intesa’s bid for MPS.
Intesa has said it will withdraw its offer if shareholders approve the defence plan put forward by Monte dei Paschi chief executive Luigi Lovaglio.
Although Caltagirone has not formally committed his shares to Intesa’s bid, his position weakens Lovaglio’s attempt to keep the bank independent.
Delfin, the Del Vecchio family investment company, and the Benetton family vehicle Edizione have already backed Intesa’s improved offer.
Together, these shareholders represent almost one-third of Monte dei Paschi’s share capital.
Their opposition may make it difficult for Lovaglio to secure the two-thirds majority required to approve his proposals, the news agency added.
Monte dei Paschi also received a setback in its approach to Banco BPM, according to a report by Bloomberg.
Crédit Agricole chief executive Olivier Gavalda said the French bank would not tender its 29.3% Banco BPM stake into Monte dei Paschi’s offer.
“We decided” not to offer its shares into the bid, Gavalda said at a press conference in Frankfurt.
Crédit Agricole is Banco BPM’s largest shareholder. Gavalda reportedly described Monte dei Paschi’s proposal as “not attractive enough”.
The French lender has previously indicated that it would favour combining Banco BPM with its own Italian operations. It has also considered other options, including a potential acquisition of Banco BPM, reported Bloomberg citing sources.
In August, Banco BPM stopped pursuing a combination with Banca Monte dei Paschi di Siena after opposition from its largest shareholder, Crédit Agricole, undermined the effort.
