Monte dei Paschi bids €34 billion for Banco BPM and Banca Generali

August 20, 2026 at 02:23 PM2 min

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Monte dei Paschi di Siena launches simultaneous all-share takeover bids worth about €34 billion for Banco BPM and Banca Generali, escalating a battle reshaping Italy's banking sector. The move marks CEO Luigi Lovaglio's effort to fend off Intesa Sanpaolo's €36 billion hostile takeover approach. The plan aims to create Italy's third-largest banking group by assets.

Key Facts

The plan includes an 'extraordinary distribution' to shareholders worth €4 billion, slightly above Intesa Sanpaolo's €3 billion offer.
MPS estimates annual pre-tax synergies of about €2.6 billion and a pro-forma balance sheet of roughly €466 billion.
MPS offers 1.567 newly-issued shares for each Banco BPM share and 6.958 for each Banca Generali share, valuing the targets at about €25.3 billion and €8.7 billion respectively.
MPS shareholders including Delfin, Francesco Gaetano Caltagirone and the Italian Treasury will vote on the plan at a meeting scheduled for October 29.
Under Italian takeover rules, any MPS countermeasures to Intesa's bid require clearance by more than 50% of shareholders.

Takeover Terms

MPS is offering 1.567 newly-issued shares for each Banco BPM share and 6.958 for each Banca Generali share, valuing the targets at about €25.3 billion and €8.7 billion respectively. The two simultaneous all-share bids are worth about €34 billion ($39.8 billion) and seek to create Italy's third-largest banking group by assets. The board majority approved the plan at a meeting on Thursday, while a minority opposed it. The proposal includes payment to shareholders partly in cash and partly through shares of Generali, representing around 4.5% of the Italian insurer in which MPS holds a 13% stake.

Synergies and Scale

MPS said the twin deals would ensure estimated annual pre-tax synergies of around €2.6 billion. The combined entity would have a pro-forma balance sheet of roughly €466 billion and more than €810 billion in total financial assets. MPS, which reached a market value of €36 billion after buying merchant bank Mediobanca last year, said the offers are designed to create a newly elevated national champion with distinctive capabilities across banking, advisory and wealth management.

Shareholder Vote

MPS shareholders must vote on the plan at a meeting scheduled for October 29. Under Italian takeover rules, any MPS countermeasures to Intesa's bid require clearance by more than 50% of shareholders. MPS shareholders include Delfin, the Del Vecchio family vehicle, billionaire businessman Francesco Gaetano Caltagirone, and the Italian Treasury. Intesa Sanpaolo's existing €36 billion bid sought to absorb MPS, was opposed by management, and was viewed by Rome as reducing competition in domestic banking.