MPS CEO says no merger talks with BPM, focus is on Mediobanca
MPS Integration Strategy and Merger Speculations
CEO Lovaglio’s Statement on Merger Talks
ROME, May 29 (Reuters) - Italy's Monte dei Paschi di Siena (MPS) is focused on integrating recently acquired Mediobanca and is not holding merger talks with Banco BPM, CEO Luigi Lovaglio said on Friday.
Media Reports on Potential Tie-Up
Italian media reported on Thursday that contacts over a long-mooted tie-up were accelerating, with news agency Adnkronos saying meetings had taken place after Lovaglio was reappointed on April 15.
Lovaglio’s Response to Merger Rumors
Asked about the report, Lovaglio denied any talks and said he was fully focused on the Mediobanca merger.
Banco BPM’s Position on Mergers
Banco BPM CEO Giuseppe Castagna has said his bank, which last year fended off a takeover attempt by bigger rival UniCredit, is exploring merger options.
Potential Merger Candidates and Timing
He has cited MPS and Credit Agricole Italia as the most obvious candidates, while cautioning that timing could be an issue - in reference to MPS's ongoing integration of Mediobanca.
MPS and Mediobanca Integration Details
MPS completed its €16 billion ($18 billion) takeover of Milan-based merchant bank Mediobanca last year. It is now in the process of buying the 14% it doesn't already own and merging Mediobanca into MPS by the end of the year.
Financial Context
($1 = 0.8590 euros)
Reporting Credits
(Reporting by Giuseppe Fonte. Writing by Sara Rossi and Valentina Za. Editing by Alvise Armellini and Mark Potter)
