Banca Monte dei Paschi di Siena

Rome has suspended the sale of its remaining 4.8% stake in Monte dei Paschi di Siena for the time being and will not place it until the battle for control of the bank is concluded. MPS had put forward a counteroffer of around €34 billion for Banco BPM and Banca Generali to defend itself against a hostile €36 billion bid from Intesa Sanpaolo. The government views Intesa’s plans critically on competition grounds; MPS shareholders will vote on the counteroffers on 29 October, Intesa shareholders on 10 September. » More on handelsblatt.com

Monte dei Paschi di Siena responds to takeover offers from Banco BPM and Intesa Sanpaolo by submitting its own bids for Banco BPM and Banca Generali. CEO Luigi Lovaglio is pursuing this risky breakout move despite the ongoing integration of Mediobanca and needs the approval of large shareholders such as Crédit Agricole. The government in Rome is sympathetic, while the transactions are pushing forward the ongoing consolidation of the Italian banking market. Analytical tenor: fewer but stronger banks have improved Italy’s financial stability and offer a lesson for countries like Germany. » More on faz.net

Monte dei Paschi die Siena submitted bids in its own shares of €25.3 billion for BPM and €8.7 billion for Banca Generali to ward off a takeover by Intesa Sanpaolo. The announcement is part of a €34‑billion plan and caused only moderate price moves; MPS rose around one percent. Overall, European stocks gained slightly, and commodity stocks benefited from China’s possible economic stimulus. » More on de.investing.com