Italy, which has usually been spared from hostile bids in the banking sector, is now the scene of a series of attacks that are shaking the financial market. Mediobanca has become the target of a takeover attempt by Banca Monte dei Paschi di Siena (MPS), a state-backed bank, a move that Mediobanca is seeking to thwart.
For several years, Mediobanca's CEO, Alberto Nagel, had been seeking to acquire Banca Generali from Generali in order to consolidate its wealth management business. A previous attempt had failed, exacerbating tensions between Nagel and some rebellious shareholders at both Generali and Mediobanca.
Mediobanca's new offensive comes after a success last Thursday, when Generali shareholders confirmed their confidence in Philippe Donnet, the CEO backed by Mediobanca, in the face of pressure from two dissident investors. The latter, construction magnate Francesco Gaetano Caltagirone and the Del Vecchio family's investment vehicle, also hold stakes in MPS and support its bid for Mediobanca.
Faced with the threat from MPS, Mediobanca will need to obtain the approval of its own shareholders to finalize the acquisition of Banca Generali. A vote on this matter is scheduled for the general meeting on June 16.
As Generali's largest shareholder, Mediobanca derives more than a third of its revenues from its 13% stake, valued at around €6.5 billion at current prices.
The public exchange offer, which Mediobanca plans to complete by the end of October, values Banca Generali at €54.17 per share, representing an 11% premium over its last closing price. This aims to integrate Banca Generali into Mediobanca's wealth management division.
