talian investment bank Mediobanca SpA announced Tuesday it had rejected a €13.3 billion ($13.9 billion) takeover offer from rival lender Monte dei Paschi di Siena, citing the proposal as harmful to shareholder value and lacking a sound strategic rationale.
Offer “Devoid of Rationale”
Mediobanca’s board of directors dismissed the bid, stating it “is devoid of industrial and financial rationale” and calling it “contrary to the interests of Mediobanca.” The proposal, made by Monte dei Paschi on Friday, included terms that would have granted Mediobanca shareholders 2.3 new Monte dei Paschi shares for each Mediobanca share, translating to an implied price of €15.99 per share.
Monte dei Paschi, widely regarded as the world’s oldest bank, said the merger would create a major force in Italian banking. The lender, which is being advised by Italian law firm Gianni & Origoni and White & Case LLP, has been attempting to reposition itself after a 2017 government bailout, which led to significant state ownership. The Italian government has since been gradually reducing its stake.
Mediobanca Rejects Loss of Independence
Mediobanca’s board voiced strong concerns about how the deal could undermine the bank’s “identity and business profile.” The directors emphasized that the proposal would erode its wealth management and investment banking divisions, key pillars of its business model.
