Mediobanca pledges 4.9 billion euro shareholder reward to counter MPS bid
Published by Global Banking & Finance Review®
Posted on June 27, 2025
1 min readLast updated: January 23, 2026
Published by Global Banking & Finance Review®
Posted on June 27, 2025
1 min readLast updated: January 23, 2026
Mediobanca announces €4.9 billion in shareholder rewards to counter MPS's bid, highlighting strategic risks and plans to acquire Banca Generali.
MILAN (Reuters) -Italy's Mediobanca said on Friday it would offer shareholders rewards worth 4.9 billion euros ($5.73 billion), mostly in cash, over three years to 2028 as it seeks to fend off a hostile bid from smaller rival Banca Monte dei Paschi di Siena (MPS).
The merchant bank reiterated in a statement that MPS' offer "lacks an industrial and financial rationale for Mediobanca shareholders and carries clear and significant execution risks."
After gaining regulatory approval from the European Central Bank on Wednesday, MPS is ready to launch its all-share bid for Mediobanca next month.
In an attempt to become too big for MPS to swallow, Mediobanca proposed in April to buy private bank Banca Generali. However, it was forced to delay a shareholder vote on the deal to September 25 to avoid a possible defeat, as investors opposed to the deal have recently increased their holdings.
(Reporting by Gianluca Semeraro; editing by Alvise Armellini)
Mediobanca is offering shareholder rewards worth 4.9 billion euros, primarily in cash, over three years until 2028.
Mediobanca stated that MPS' offer lacks industrial and financial rationale for its shareholders and carries significant execution risks.
MPS gained regulatory approval from the European Central Bank, allowing it to launch its all-share bid for Mediobanca next month.
Mediobanca proposed to buy private bank Banca Generali in an attempt to become too large for MPS to acquire.
The shareholder vote on the acquisition of Banca Generali has been delayed to September 25.
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