Finance
Mediobanca hits back in Italy's bank M&A war with $7 billion Banca Generali bid
Published by Global Banking and Finance Review
Posted on April 28, 2025
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Published by Global Banking and Finance Review
Posted on April 28, 2025
By Valentina Za
MILAN (Reuters) - Italy's Mediobanca struck back on Monday in its fight to remain independent by announcing a 6.3 billion euro ($7.15 billion) offer for private bank Banca Generali to be financed by using its stake in insurer Generali.
A raft of hostile bids, historically a rare occurrence in banking, is rocking Italian finance, with Mediobanca becoming a takeover target for state-backed Monte dei Paschi di Siena, a move which Mediobanca is trying to thwart.
Mediobanca CEO Alberto Nagel had long targeted buying Banca Generali from Generali to strengthen Mediobanca's wealth management business.
At least one previous attempt had not been successful and contributed to heightening long-running friction between Nagel and dissenting shareholders in both Generali and Mediobanca.
Mediobanca unveiled the bid for Banca Generali after it scored a victory on Thursday against the two rebel investors in both Mediobanca and Generali, as other shareholders in Generali voted to keep Mediobanca-backed CEO Philippe Donnet in the top job at the insurer.
The two shareholders, construction magnate Francesco Gaetano Caltagirone and the investment vehicle of Italy's Del Vecchio family, have also become investors in MPS, and given their support to its buyout offer for Mediobanca.
Given the MPS bid, Mediobanca needs to secure shareholder approval for the Banca Generali acquisition, which it will seek on June 16.
Mediobanca is the largest investor in Generali, which accounts for over a third of its income. Its 13% stake is worth around 6.5 billion euros at current market prices.
The exchange offer, which Mediobanca said it expects to complete by end-October, translates to a deal price of 54.17 euros per share, an 11% premium to Banca Generali's last close.
The deal aims to merge Banca Generali into Mediobanca's wealth management division, the company said.
($1 = 0.8796 euros)
(Reporting by Valentina Za and Abinaya Vijayaraghavan; Editing by Muralikumar Anantharaman)