Italy to Remain Neutral on MPS Merger and Acquisition Activities, Ministry Affirms
Government Position and Recent Developments in the Italian Banking Sector
Official Statement from the Economy Minister
ROME, June 18 (Reuters) - The Italian government will take a neutral stance regarding merger and acquisition moves targeting bank Monte dei Paschi di Siena (MPS), Economy Minister Giancarlo Giorgetti told parliament on Thursday.
Recent Merger and Acquisition Proposals
Intesa Sanpaolo's Bid for MPS
Italy's top banking group Intesa Sanpaolo this month made a €30.6 billion ($35 billion) unsolicited cash-and-share bid to buy MPS to create the euro zone's second-largest lender.
Banco BPM's Interest in MPS
Banco BPM, Italy's fourth-largest bank, also said it wanted to open talks with MPS about a potential merger.
Ministry's Stance on Consolidation and Future Transactions
Neutral Approach to Consolidation
"The economy ministry will take a neutral stance regarding the ongoing consolidation process, without taking a position on the extraordinary transactions that have been announced or on any alternative transactions," Giorgetti said, addressing parliament.
Treasury's Stake and Exit Strategy
Current Treasury Ownership
The Treasury still owns a 5% stake in MPS after returning the bank to private hands, following a costly bailout in 2017 agreed with European Union Authorities.
Plans for Reducing the Stake
Giorgetti said the Treasury was committed to cutting its residual stake, adding that a market placement remains "one of the best options" available.
"The goal is to exit at the best conditions," Giorgetti said.
(Reporting by Giuseppe Fonte, editing by Alvise Armellini and Gavin Jones)
