Italian bank Mediobanca has rejected a surprise takeover attempt by domestic rival Monte dei Paschi di Siena. In a statement, Mediobanca stated that the offer lacks industrial and financial rationale. Monte dei Paschi, Italy's oldest bank, initiated a 13.3 billion-euro ($13.9 billion) takeover bid for larger Milan-based peer Mediobanca last week, with the goal of reshaping the Italian banking sector. The proposed merger was projected to generate 700 million euros ($733 million) annually in pretax synergies and deliver substantial profits.
However, Mediobanca expressed concerns that the offer would compromise its identity and business profile, which is centered on high-value-added business segments with clear growth trajectories. The bank believes that the proposed merger would destroy shareholder value at both institutions. The bid from Monte dei Paschi came following the Italian government's decision to reprivatize the once-troubled bank, which has been primarily owned by the Italian Treasury since a costly bailout in 2017.
Italian Premier Giorgia Meloni highlighted that if the merger were successful, it would establish Italy's third-largest bank and potentially play a crucial role in safeguarding Italians' savings. The major shareholders of the banks are set to discuss the bid at a regular meeting scheduled for next month, focusing on the 2024 financial results.
