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MPS shareholders set to sink CEO's defence plan against Intesa bid - Finance news and analysis from Global Banking & Finance Review
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MPS shareholders set to sink CEO's defence plan against Intesa bid

Published by Global Banking & Finance Review

Posted on October 29, 2026

2 min read

· Last updated: October 29, 2026

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MPS Shareholders Set to Reject CEO Lovaglio’s Defence Plan Against Intesa Bid

Shareholder Vote and Strategic Defence Moves

SIENA, Italy, Oct 29 (Reuters) - Monte dei Paschi di Siena shareholders were set on Thursday to vote down the defence plan CEO Luigi Lovaglio put forward to fend off a €33 billion ($37 billion) takeover offer by Intesa Sanpaolo.

The plan was expected to be rejected as Intesa has secured the backing of the main MPS shareholders, Delfin and Caltagirone, making it impossible for Lovaglio to muster the required two-thirds approval.

Lovaglio’s Twin Acquisition Proposal

To block Intesa's bid, Lovaglio has proposed twin all-share acquisition offers for rival mid-sized bank Banco BPM and wealth manager Banca Generali worth a combined €34 billion.

Background on Lovaglio’s Leadership

Lovaglio, who took the reins in 2022, has successfully restructured MPS and led it to acquire Milanese merchant bank Mediobanca - the biggest deal so far in the country's banking consolidation process.

Shareholder Meeting Highlights

"We have accomplished what many believed impossible over the past four years," Lovaglio said at Thursday's shareholder meeting.

The CEO said the Mediobanca acquisition was delivering better results than expected.

Merger Vote and Intesa’s Position

MPS shareholders were also due to vote on Thursday on the merger of Mediobanca into MPS, a plan which Intesa has asked them to reject without, however, making it a condition for its offer to proceed.

"I find it surprising that Intesa Sanpaolo, which was initially favourable to the Mediobanca merger, has now changed its mind," Lovaglio said.

Conditions of Intesa’s Takeover Bid

Intesa has conditioned a sweetened takeover bid for MPS to the Tuscan bank's investors rejecting the twin offers for Banco BPM and Banca Generali.

Regulatory and Shareholder Details

Under Italian takeover laws, any management initiative that could thwart a buyout offer must first gain shareholder approval.

MPS Chairman Cesare Bisoni said shareholders representing 65.86% of the share capital were present at Thursday's meeting. ($1 = 0.8971 euros)

(Reporting by Valentina Za, editing by Alvise Armellini)

Key Takeaways

  • Lovaglio's proposed all‑share bids for Banco BPM and Banca Generali, worth around €34 billion, are expected to be voted down on October 29 due to lack of support, particularly from Delfin and Caltagirone (videoembed.ansa.it).
  • Governance advisers ISS and Glass Lewis have recommended shareholders reject the defence plan, citing concerns over complexity and value creation amid ongoing integration of Mediobanca (uk.marketscreener.com).
  • Intesa Sanpaolo has sweetened its takeover offer, adding €800 million in cash and has warned it may withdraw if MPS shareholders approve the counter‑offers (live.euronext.com).
  • Antitrust scrutiny is underway, with the Italian Competition Authority investigating Intesa’s takeover launched June 8, 2026 (en.agcm.it).

References

Frequently Asked Questions

What is the value of Intesa Sanpaolo's takeover offer for MPS?
Intesa Sanpaolo has made a €33 billion ($37 billion) takeover offer for MPS.
Why is CEO Luigi Lovaglio's defence plan likely to be rejected?
The plan is expected to be rejected because Intesa has secured support from MPS's main shareholders, making two-thirds approval impossible for the CEO.
What alternative acquisitions did CEO Lovaglio propose to block the Intesa bid?
Lovaglio proposed all-share acquisition offers for Banco BPM and Banca Generali worth a combined €34 billion.
What recent major acquisition has MPS completed?
MPS recently completed the acquisition of Milanese merchant bank Mediobanca.
What Italian takeover rule is relevant to the MPS-Intesa situation?
Any management initiative that could thwart a buyout offer must gain shareholder approval under Italian takeover laws.

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