Intesa Sanpaolo increased the cash leg of its exchange offer for Banca Monte dei Paschi di Siena by 25 cents a share in early October, adding about EUR800m and lifting the bid to roughly EUR35bn. Delfin, the Del Vecchio family holding that owns 17.6% of MPS, committed to tender its entire stake.
Why Intesa Sanpaolo is buying Banca Monte dei Paschi di Siena
Intesa wants MPS partly for its holdings gained through the Mediobanca takeover, which made MPS Generali's biggest shareholder. A combination would create the euro zone's second-largest bank by market value.
Deal terms and financing
MPS holders would receive 1.6 new Intesa shares plus EUR1.25 in cash per share under the sweetened terms; the extra 25 cents is conditional on MPS shareholders rejecting CEO Luigi Lovaglio's proposed bids for Banco BPM and Banca Generali.
Regulatory approvals and timing
Intesa has said its offer would lapse if MPS shareholders approve the rival transactions at the Oct 29 meeting. To ease antitrust concerns Intesa agreed with Unipol to dispose of about 635 MPS branches if it wins.
Market context
Intesa first launched its offer on June 8 at about EUR30.6bn, gatecrashing Banco BPM's merger-of-equals approach to MPS. The Italian government still owns about 5% of MPS and has signalled it will not intervene.
