Intesa Sanpaolo offered 16 shares plus €1 cash for every 10 Monte dei Paschi di Siena shares, valuing the bid at €31 billion and a 12.5% premium following Banco BPM’s approach. The deal would form the eurozone’s second-largest bank by market value and boost net profit above €16 billion by 2029.
Intesa Sanpaolo launched a €31 billion offer for Monte dei Paschi di Siena, proposing 16 of its shares plus €1 cash per 10 MPS shares, a 12.5% premium to MPS’s last closing price.
Management forecasts the combined entity will rank as the eurozone’s second-largest bank by market value, with net profit climbing above €16 billion by 2029, up from Intesa’s €9.3 billion net profit last year.
Monte dei Paschi shares surged nearly 13% on the announcement while Intesa shares dipped 2% and Banco BPM gained about 1%, signaling potential for a bidding war.
To secure regulatory approval, Intesa agreed to sell roughly half of Monte dei Paschi’s branches and its Siena central offices to insurer Unipol if the merger is completed.
