“The deal would generate no benefit whatsoever in these segments,” the board warned. “Rather, it would generate a significant deterioration. To provide investment banking services to large and medium-sized corporates requires independence of judgment and an absence of conflicts of interest, both of which are difficult to reconcile with a commercial banking model.”
Mediobanca’s rejection highlighted the risks of merging with a commercial bank like Monte dei Paschi, suggesting such a move could alienate clients and damage its standing in high-value banking services.
Overlapping Shareholders Raise Concerns
Both banks share similar key investors, including Delfin Sarl, the financial holding company of late billionaire Leonardo Del Vecchio, and Caltagirone SpA, a cement manufacturer. Mediobanca’s board flagged potential conflicts arising from these overlapping shareholders, calling it a “misalignment of interests relative to other shareholders.”
No Immediate Response
Monte dei Paschi has not responded to requests for comment on Mediobanca’s rejection. Counsel details for Mediobanca were also unavailable at the time of publication.
