Monte dei Paschi Di Siena Unveils €34 Billion Bid for BPM and Generali

The Italian bank Monte dei Paschi di Siena has announced two voluntary public exchange offers for all shares in Banco BPM and Banca Generali, worth around €34 billion. This move is seen as a direct alternative to Intesa Sanpaolo's takeover bid for Monte dei Paschi di Siena.

The combined proposal would create a new group with a pro forma market capitalization of around €80bn, ranking among the top ten European banks and second in Italy for customer loans and branch network. The deal is structured as Ops or share-only offers, with no cash component.

Banco BPM's offer carries a total consideration of €25.3 billion, with an exchange ratio of 1.567 Monte dei Paschi di Siena shares for each Banco BPM share tendered. Banca Generali's offer is worth €8.72 billion, with an exchange ratio of 6.958 Monte dei Paschi di Siena shares.

Monte dei Paschi di Siena's chief executive Luigi Lovaglio said the combined group would be a stronger Italian bank of European relevance, rooted in the national economy and ready to compete in a constantly evolving sector. He described it as a 'friendly, non-hostile combination' due to its potential for growth and profitability.