Banca Monte dei Paschi di Siena

Around 91 percent of Banca Monte dei Paschi di Siena shareholders rejected the takeover offers for Banca Generali and Banco BPM proposed by the group’s management, causing CEO Luigi Lovaglio’s defense plan to fail. That clears the way for Intesa Sanpaolo’s increased offer of €31.4 billion to acquire Monte dei Paschi. Intesa has already received ECB approval but is still awaiting clearance from the Italian securities regulator and the competition authority; the acceptance period is due to begin next month. » More on finanzen.net

At the shareholder meeting, 91% of those present voted against the defense plan proposed by CEO Luigi Lovaglio, with participation representing 65.86% of the capital. That raises the likelihood that Intesa Sanpaolo will take over the bank; Intesa is offering €1.25 in cash plus 1.6 Intesa shares for each MPS share and has received ECB approval. Shareholders also rejected an immediate merger of MPS with Mediobanca. The voting defeat is also likely to mean the end of Lovaglio’s tenure at MPS. » More on handelsblatt.com

Monte dei Paschi's board still considers Intesa's improved offer to be below the average of comparable bids in the Italian banking sector. Intesa raised the cash component by €0.25 per share to a total of €3.8 billion, bringing the offer's total value to €31.4 billion, but the consideration consists largely of Intesa shares. Monte dei Paschi criticizes the shareholder exposure to Intesa and will continue to consider measures to protect value for its shareholders; in August the bank also submitted its own takeover offers for Banco BPM and Banca Generali. » More on finanzen.net