Italy's Caltagirone deals blow to Monte dei Paschi defence plan against Intesa

Caltagirone Opposes MPS Defence Plan, Boosting Intesa Sanpaolo's Takeover Bid

Key Developments in the MPS Takeover Battle

Caltagirone's Opposition to MPS Acquisition Proposals

ROME, Oct 8 (Reuters) - The holding company of Italian entrepreneur Francesco Gaetano Caltagirone said on Thursday it would vote against Monte dei Paschi di Siena's (MPS) proposals to acquire Banco BPM <BAMI.MI> and Banca Generali.

Impact on MPS Defence Strategy

The decision deals a fresh blow to MPS Chief Executive Luigi Lovaglio's efforts to fend off market leader Intesa Sanpaolo's takeover bid for the Tuscan lender.

Shareholder Meeting and Merger Opposition

Caltagirone's FGC, which owns 10.26% of MPS, said it would vote against both acquisitions at an Oct. 29 shareholder meeting and that it would also oppose a proposed merger between MPS and Mediobanca, another pillar of Lovaglio's defence strategy.

Other Major Investors Back Intesa's Offer

Its stance follows decisions by two other major MPS investors - Delfin, the Del Vecchio family's holding company which holds a 17.6% stake, and the Benetton family vehicle Edizione with a 1.45% stake - to back Intesa's improved €35 billion ($39.18 billion) offer for MPS.

Lovaglio's Strategy for MPS Independence

Lovaglio unveiled the acquisitions in August as part of a broader strategy aimed at keeping MPS independent and creating a larger financial group capable of resisting Intesa's approach.

Shareholder Decisions and Takeover Momentum

Intesa has said it will withdraw its offer if MPS investors endorse Lovaglio's defence plan. As a result, voting against the proposed acquisitions and merger has become the clearest way for shareholders to support Intesa.

Implications for the Oct. 29 Vote

While Caltagirone stopped short of formally committing his stake to Intesa's offer, his decision to oppose all three elements of the MPS plan gives Intesa's bid momentum and increases pressure on Lovaglio ahead of the decisive Oct. 29 vote.

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Reporting Credits

(Reporting by Giulia Segreti in Rome, editing by Stefano Bernabei and Gavin Jones)