Intesa Offers Italy Assurances on Generali Stake in Monte Paschi Acquisition
Intesa Sanpaolo's Commitment and Implications for Generali and Monte dei Paschi
By Giuseppe Fonte
Intesa's Consultation with the Italian Government
ROME, June 15 (Reuters) - Intesa Sanpaolo has committed to consulting with Italy's government over future decisions affecting insurer Generali, sources said on Monday, as part of assurances the bank offered Rome regarding its plan to take over Monte dei Paschi.
The proposed acquisition would turn Intesa, Italy's biggest bank, into the largest investor in the country's top insurer, which the government sees as strategic given its role in managing hundreds of billions of euros of Italians' savings.
Assurances and Cooperative Approach
Asking not to be named, two sources with knowledge of the matter told Reuters that Intesa CEO Carlo Messina had assured the government it would adopt a "cooperative" approach with the Italian authorities over Generali.
A spokesperson for Intesa Sanpaolo declined to comment. A source close to Generali said the group was in constant communication with the government.
Institutional Engagement and Regulatory Considerations
Messina said last week that before making his move on MPS he had reached out to "various institutional players" to ensure Rome would not try to hamper the deal, though he said he had not talked to Prime Minister Giorgia Meloni.
Italy has so-called "golden powers" allowing the government to rein in bank takeover proposals, but the sources said it would not use the legislation to derail Intesa's plans.
Generali's €900 billion in assets under management are crucial for Meloni's conservative government, as they help Italy to refinance its massive €3 trillion of public debt.
Government's Perspective on Generali's Shareholder Base
Stability and Key Stakeholders
GOVERNMENT WANTS STABLE GENERALI SHAREHOLDER BASE
The government is keen for Generali to have a stable shareholder base after MPS last year took over Mediobanca, the biggest investor in the insurer with a 13% stake.
The main two MPS investors, Italy's Delfin holding and the Caltagirone group, are also Generali investors with a combined 16.5% stake.
Potential Instability Factors
In a source of potential instability, Delfin and Caltagirone took opposite sides in this year's boardroom clash at MPS. Delfin is also undergoing an ownership reshuffle which may lead it to review its investment portfolio.
A further question mark arises from UniCredit, which has built a near 9% stake saying it is only a financial investment.
Intesa's Position on Generali Stake and Antitrust Concerns
Messina said Intesa wanted to keep the Generali stake it would inherit through MPS-Mediobanca, but ruled out a takeover of the insurer because of antitrust issues. It has already acquired a 3% stake in the insurer.
Recent Developments and Government Intervention
Abandoned Asset Management Plans
Generali last year dropped plans drawn up with France's BPCE to create Europe's largest asset manager by combining the businesses of Generali Investments Holding (GIH) and Natixis Investment Managers.
Government's Role in Asset Management Decisions
The government was opposed to the deal and demanded assurances that Generali would remain in full control of allocating savings collected in Italy, Reuters reported.
($1 = 0.8622 euros)
(Additional reporting by Valentina Za and Gianluca Semeraro in Milan, editing by Gavin Jones and Keith Weir)
