Mediobanca Rejects MPS's Unsolicited Takeover Offer: A Move Deemed Destructive
Deal News | Jan 28, 2025 | Mediobanca
In a decisive board meeting, Mediobanca's leadership has unequivocally rejected a takeover bid by Banca Monte dei Paschi di Siena (MPS), labeling it as a value-destructive move devoid of any industrial or financial logic. Mediobanca's strategic vision through its 2023-26 plan focuses on fostering growth in its Wealth Management and Corporate & Investment Banking divisions, which have shown robust performance with significant revenues and net profit growth. The bid by MPS is perceived as threatening Mediobanca’s specialized business model, potentially leading to customer and staff loss, especially in segments requiring high independence. The lack of financial synergy is evident with downward trends in MPS’s share prices, declining analyst forecasts, and the inability to realize appreciable cost synergies. Furthermore, shared major stakeholders among MPS, Mediobanca, and Assicurazioni Generali present potential conflicts of interest, marking the bid as untenable. Mediobanca remains resolved to execute its strategic plan geared toward sustainable value creation.
Sectors
- Investment Banking
- Wealth Management
Geography
- Italy – Both Mediobanca and MPS are major Italian banks, and the article discusses their operations and strategic positioning within the Italian market.
Industry
- Investment Banking – Mediobanca's Corporate & Investment Banking division plays a crucial role in its operations, making the investment banking sector highly relevant to the article.
- Wealth Management – Mediobanca's strategic emphasis on growing its Wealth Management division, which has surpassed significant financial milestones, relates the article to the Wealth Management sector.
Financials
- 15.23 per share – Mediobanca stock price at close of business on 23 January 2025, which serves as a benchmark for comparing the MPS offer.
- 6.41, 6.15, 5.62, 4.77 – MPS share prices over different time horizons, highlighting the discounts offered by the MPS takeover bid relative to Mediobanca's non-disturbance price.
- 3.7bn – Estimated total shareholder return for the 2024-26 three-year period under Mediobanca's strategic plan.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Mediobanca | Target | Company | An Italian investment bank known for its specialized services in wealth management and corporate & investment banking. |
| Banca Monte dei Paschi di Siena (MPS) | Bidding Company | Company | An Italian bank attempting to acquire Mediobanca through a public exchange offer. |
| Delfin | Shareholder | Company | A company holding shares in both MPS and Mediobanca, representing potential conflicts of interest in the takeover bid. |
| Caltagirone | Shareholder | Company | Another significant shareholder in both MPS and Mediobanca, adding complexity to the potential takeover. |
| Assicurazioni Generali | Other Company | Company | A major Italian insurance company with cross-shareholdings involving MPS and Mediobanca. |