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Bond Market News
Monte Paschi Announces €13.4bn bid for Mediobanca
January 27, 2025
Italian bank Banca Monte dei Paschi (BMPS) announced an unsolicited €13.4bn ($14.1bn) bid to acquire its rival Mediobanca last Friday. The acquisition bid by BMPS contrasts sharply with its troubled history and nationalization. This comes just months after the Italian government was seeking a buyer for BMPS. Its bid comes with backing from powerful billionaire families, the Del Vecchios and the Caltagirones, who have increased their stakes in BMPS and also own significant shares in Mediobanca. In its statement, BMPS said that the acquisition would enable it to add wealth management operations, cut €300mn ($313.8mn) in annual costs and “accelerate the usage of €2.9 billion” in deferred tax assets to reap capital benefits. However, Mediobanca sees the bid as hostile, as per sources. If successful, the deal may increase the Italian government’s influence over key sectors, including insurance giant Generali, where Mediobanca holds a large stake.
Monte Dei Paschi’s notes traded stable with its 8.5% 2030s at 102.9, yielding 3.5%
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