ECB urges Intesa to keep 'cautious' dividend policy after MPS acquisition

ECB Presses Intesa for Cautious Dividend Policy After MPS Acquisition

ECB Guidance and Conditions for Intesa’s Acquisition of Monte dei Paschi di Siena

ECB’s Stance on Dividend Distribution

MILAN, Nov 10 (Reuters) - The European Central Bank has called for a "cautious approach to dividend distribution" in approving Intesa Sanpaolo's €34.5 billion ($38.5 billion) acquisition of Monte dei Paschi di Siena, the offer's investor document showed.

Regulatory Approvals and Offer Details

Consob Approval and Prospectus Publication

Intesa published the offer's prospectus on Tuesday after receiving on Sunday approval from Italian markets regulator Consob ahead of kicking off the tender period on November 24.

ECB’s Ancillary Provisions

Intesa said the ECB's clearance contained so-called ancillary provisions, such as the requested for a detailed integration plan within six months after the deal closes.

Capital Buffer and Distribution Policy

Maintaining Adequate Capital Buffers

The ECB has recommended Intesa maintains capital buffers adequate to the "complexity and execution risks" of the transaction.

Dividend and Buyback Policy

Cash Dividend Payout Ratio

Intesa's distribution policy includes a cash dividend payout ratio of 75% of profits with up to another 20% of profits potentially to be paid out as share buybacks following a yearly assessment it carries out after seeing how earnings fared.

Exchange Rate Information

($1 = 0.8968 euros)

(Reporting by Valentina Za, editing by Alvise Armellini)