By Andrea Mandala
MILAN (Reuters) – Two shareholders in Italy’s Monte dei Paschi di Siena (MPS), with a combined stake of 9%, will back a share issue proposed by the bank to fund its hostile bid for rival Mediobanca.
Banco BPM, which holds a 5% stake in MPS, said it would vote in favour of issuing the necessary MPS shares in a ballot scheduled on April 17. Separately, two sources said Anima Holding, with a 4% shareholding, would do likewise.
In January, MPS, which has made a strong comeback since being bailed out by the government in 2017, launched a surprise bid for the Milan-based Mediobanca, with the aim of combining its own commercial network with its peer’s wealth management and investment banking activities.
The costly 2017 rescue deal handed Italy 68% of MPS. Rome has since reduced this stake to 11.7% through three share placements it carried out starting in November 2023 to meet commitments agreed with the European Union.
MPS said on Monday it had received an unconditional green light from the Italian government for its Mediobanca plan.
Both Banco BPM and Anima will join a core of Italian shareholders who are expected to support the project, including construction tycoon Francesco Caltagirone and the heirs of late billionaire Leonardo Del Vecchio, who together own slightly less than 20% of the Tuscan bank.
However Thursday’s vote largely hinges on the stance of dozens of international funds that invested in MPS as the state cut its stake.
Advisory group Institutional Shareholder Services has urged shareholders to reject the plan as it leaves “little margin for error”, while rival Glass Lewis is in favour of it, saying Lovaglio’s track record provides guarantees for shareholders.
(Reporting by Andrea Mandalà, additional reporting by Stefano Bernabei, editing by Giulia Segreti and Crispian Balmer)
