Intesa Sanpaolo Launches €30.6 Billion Bid for MPS to Lead Italian Banking
Key Details of Intesa Sanpaolo's Bid for Monte dei Paschi di Siena
By Valentina Za and Andrea Mandala
MILAN, June 11 (Reuters) - Intesa Sanpaolo's unsolicited €30.6 billion ($35 billion) cash-and-share bid for Monte dei Paschi di Siena (MPS) seeks to cement its domestic supremacy at a time when rival UniCredit is closing in on Germany's Commerzbank.
Months in the making, the offer was announced on Monday, two days earlier than planned after Banco BPM said on Sunday it would invite MPS to discuss a potential "merger of equals".
Below are the key elements of the project:
Size of the Resulting Group
After a retail branch carve-out the combined group that includes 625 MPS branches, Mediobanca, as well as a 13% stake in insurer Generali, would have:
Client Base and Financial Assets
* More than 27 million clients versus around 21 million for Intesa at the end of 2025
* Customer total financial assets of €1.7 trillion, a target Intesa had set for 2029, up from €1.5 trillion at the end of 2025.
Profit Targets
* Combined net profit target of more than €16 billion in 2029 versus around €11.5 billion pro-forma combined in 2025.
Integration Costs and Benefits
Annual Benefits
Total pre-tax annual benefits: €2.9 billion of which €1.5 billion from reducing costs and €1.4 billion from revenues.
One-off Costs
One-off costs from combination: €2.1 billion pre-tax or around €1.4 billion net.
Timeline of the Deal
Key Dates
* End-June: filing of official investor document on offer
* September 10: Intesa shareholder meeting to approve new share issue needed to finance the bid
* From end-September to end-December:
Regulatory and Offer Process
- regulatory authorisations
- approval of offer document and publication
- start of tender offer period
- payment date
* H2 2027: sale to Unipol of the MPS carve-out.
Unipol's Role in the Transaction
What Is Unipol Buying?
* The Monte dei Paschi di Siena brand which will become Monte dei Paschi when combined with Unipol-controlled BPER Banca
* 635 branches free from commercial partnerships, around 2 million customers
* Around €42 billion in loans and €55 billion in deposits
* Carved-out entity has €400–€460 million in profits
How Much Is Unipol Paying?
* Between €3 billion and €3.5 billion in cash.
The Future of Monte dei Paschi Bank
* More than 2,600 branches
* Around €170 billion of client loans and around €225 billion of deposits.
Comparison with Banco BPM's Proposal
Banco BPM, which owns 3.7% of MPS, did not table an offer but said it would invite MPS to discuss a "merger of equals" with estimated pre-tax benefits above €1.1 billion of which around €650 million from cost savings.
Structure of Intesa's Bid
Offer Details
Intesa is offering 1.6 new shares for each MPS share tendered plus €1 in cash
Shares issuance: up to 4.86 billion
Cash outlay: €3 billion
The MPS shareholders will hold 21.7% of Intesa post-deal.
Premium Offered
12.5% versus the closing price on the last trading day pre-bid
17.4% versus the previous three-month average.
Deal Conditions
Minimum acceptance threshold: 66.67% of MPS capital
Regulatory approvals.
($1 = 0.8678 euros)
(Reporting by Valentina ZaEditing by Keith Weir)
