Monte Paschi's Hostile €13.3B Bid for Mediobanca

Banca Monte dei Paschi di Siena SpA has launched a €13.3 billion all-share buyout offer for Mediobanca SpA, marking a significant move in Italy's banking sector consolidation. The offer proposes 23 Monte Paschi shares for every 10 Mediobanca shares, representing a 5% premium over the latter's recent market price. Despite the restructuring success of Monte Paschi under CEO Luigi Lovaglio, Mediobanca views the offer as hostile and seems inclined to reject it. The Italian government, which has been reducing its stake in Monte Paschi, aims to foster a new, large banking entity through such mergers. Major stakeholders like Delfin, owned by the Del Vecchio family, and Francesco Gaetano Caltagirone, influential in both banks, could heavily influence the merger's outcome. The deal would yield substantial synergies, though regulatory approval and market reactions remain uncertain.