Italy to Abstain from Monte Paschi Shareholder Vote on Intesa Takeover Defence
Government Stance and Shareholder Meeting Overview
By Giuseppe Fonte
Italy's Position on the Shareholder Vote
ROME, Sept 23 (Reuters) - Italy will abstain from a vote at a Monte dei Paschi di Siena (MPS) shareholder meeting called to approve defensive acquisitions to fend off a hostile takeover by Intesa Sanpaolo, Economy Minister Giancarlo Giorgetti said on Wednesday.
Giorgetti's stance means MPS' Chief Executive Luigi Lovaglio will get no direct assistance from the government in his efforts to derail Intesa's plan. The Treasury is one of the bank's largest shareholders through its 4.9% shareholding.
MPS Defensive Strategy and Acquisition Bids
MPS, Italy's third-largest bank, has launched separate all-share bids worth a combined €34 billion euros ($39.46 billion) for Banco BPM and Banca Generali, as a defensive strategy against market leader Intesa.
Under Italian takeover rules, the transactions must be approved by at least two-thirds of shareholders voting at the Oct. 29 extraordinary meeting.
Key Shareholders and Investors
Key MPS investors also include businessman Francesco Gaetano Caltagirone and Delfin, the holding company of the Del Vecchio family that inherited the eyewear empire founded by the late Leonardo Del Vecchio.
Government Statements and Political Reactions
Official Comments from Economy Minister Giorgetti
"We will not participate, and we will abide by the market's decision regarding the outcome," Giorgetti told reporters in parliament when asked whether the ministry would vote at the meeting.
Background: State Bailout and Takeover Bid
Bailed out by the state in 2017 and reprivatised in 2023-2024, MPS in June became the target of an unsolicited €36 billion takeover bid by rival Intesa which would break up the Tuscan lender.
Regional and Political Concerns
Politicians from the Tuscany region and Siena, where MPS has central offices, have repeatedly urged the government to vote against Intesa at the shareholder meeting to preserve MPS in its current form.
"The market, with its supreme ability to discern, will reward whatever turns out to be the best offer," Giorgetti said.
Prime Minister Meloni's Perspective
Prime Minister Giorgia Meloni said in an interview last month she hoped MPS would not be "dismembered", a few days before Lovaglio announced the two simultaneous bids.
Analysts interpreted Meloni's remarks as distancing the government from Intesa's plan, although the prime minister also said Rome would take no active role in the banking M&A battle.
Regulatory Powers and Future Outlook
Italy's "Golden Powers" in M&A Deals
Italy has so-called "golden powers" it can use to block or set conditions on M&A deals affecting strategic sectors, including banks and insurers.
Likelihood of Government Intervention
However, the government is unlikely to use these powers in any ongoing banking tussles, and if it does it will impose only minor conditions, a source with direct knowledge of the matter told Reuters.
(Editing by Gavin Jones)
