Italy to handle Monte Paschi stake without interfering with M&A moves
Government Strategy and Market Implications
By Giuseppe Fonte
Government's Approach to Monte dei Paschi di Siena (MPS) Stake
ROME, Aug 5 (Reuters) - Italy will handle its residual 4.9% stake in Monte dei Paschi di Siena (MPS) in a way that does not interfere with M&A moves affecting the bailed-out lender, Economy Minister Giancarlo Giorgetti told reporters on Wednesday.
Shareholding Timeline and Intesa Sanpaolo's Bid
Rome will keep its shareholding at least until the end of Intesa Sanpaolo's unsolicited €30.6 billion ($35.34 billion) cash-and-share bid for MPS, a source familiar with Giorgetti's thinking on the matter said.
Accelerated Bookbuilding Procedure (ABB) Plans
The economy minister also said the ministry had readied an accelerated bookbuilding procedure (ABB) to place its MPS stake with investors before Intesa announced its plans in June, confirming a previous Reuters report.
Neutral Stance on Banking Consolidation
"Now we'll act in a way that doesn't cause problems for anyone. We don't want to interfere," Giorgetti said, when asked whether a share placement could come before Intesa's takeover offer starts.
The minister said in June that an ABB would be "one of the best solutions" to cut Italy's stake in MPS, adding that the timing of any sale should be decided in line with Rome's stated neutral stance on Italy's banking consolidation process.
Market Reactions and Future Outlook
Expectations of Stake Disposal
Speaking at the annual meeting of Italy's banking lobby last month, Giorgetti said it would be the last such gathering that the government attended as a bank shareholder.
His remarks fuelled expectations of an imminent disposal. At current market prices, the state's stake in MPS is worth €1.7 billion.
Analyst and Market Perspectives
The market would see as negative for Intesa a placement of the Treasury shares before the start of the offer, analysts have told Reuters, because it could give an edge to any buyer interested in fighting the takeover.
Giorgetti's latest comments, highlighting the need not to create obstacles, appear consistent with that view.
Other M&A Interests and Historical Context
Banco BPM's Interest and Credit Agricole's Role
Italian mid-sized lender Banco BPM had also expressed interest for a merger deal with MPS, but abandoned the plan following criticism from its main shareholder, France's Credit Agricole.
Treasury's Stake and Bailout Background
The Treasury owns 4.86% of MPS after rescuing the bank in 2017 through a costly bailout agreed with European Union authorities, and later returning it almost entirely into private hands through three stake placements starting in late 2023.
Financial Details
($1 = 0.8658 euros)
(Additional reporting by Valentina Za in Milan; Editing by Gavin Jones)
