In view of the proposed merger between MPS and Banco BPM, five thousand employees They will have to pack their bags so as to save 400 million in the "personnel" item. He says La Repubblica reporting details of the communications from the Sienese bank to the Consob not disclosed to the market. Furthermore, there is talk of theacquisition from Mediobanca “of all the shares Generali", that is, that 13,3% of Leo essential for its control.
The dates of the correspondence show that the Commission writes to the Sienese on August 21st, a few hours after the statement MPS launched a double exchange offer for Banco BPM and Banca Generali.The reply from the bank led by Luigi Lovaglio is dated August 25th, and in 15 pages – which Republic was able to consult – responds to Consob's requests.
Staff savings plan: five thousand out and 2.500 in
The first significant piece of information in the letter is precisely that on theoccupation, he writes La Repubblica. Mps and Banco Bpm together would have just over 40.000 employees, but for Banco Bpm, the Sienese write, the savings on staff are estimated "up to approximately 400 million", assuming "outflows of resources - on the basis of voluntary early retirement plans - of about 5.000 employees, mainly in the central and commercial coordination structures". The resounding cut in employees would actually be partly compensated, the letter continues, with “a program of new entries, approximately in the ratio of one new hire for every two exits". So, 5.00 outside and 2.500 inside. The document is also explicit about other costs. Non-personnel savings are estimated at approximately "39% of Banco BPM's non-personnel cost base."
Message to the Antitrust Authority: Estimated 57 to 115 branches to be sold
Another novelty concerns the repercussions AntitrustMPS explained to the market that any network overlaps do not call into question the feasibility of the takeover bid for Banco BPM, and ruled out closures other than those imposed by the Competition Authority. The letter to Consob shows that Siena has already done its calculations, simulating the combined market share with Banco BPM on a provincial basis. Assuming a maximum cap of 25% of the market on a local basis, the branches of the new hub exceed the threshold in 15 provinces and a surplus of approximately “115 branches equivalent”. But if the Antitrust were to use a looser filter, with a maximum threshold of 30%, the critical area would be restricted to 57 branches excess. The highest concentrations are in Tuscany, where MPS has always been the leader, and the network with BPM would see 52 branches exceeding 25% and 33 branches with over 30% of the market. In Lombardy, the surpluses are 45 and 18 respectively, in Veneto 11 and zero, and in Piedmont six in both scenarios.
In the "third pole" Crédit Agricole would become the largest shareholder with 10,9%
Then there is the chapter concerning the shareholders from the future “third pole”In the responses sent to Consob, in the event of complete success of both offers, Crédit Agricole would become the first shareholder with 10,9%, Followed by Dolphin at 8,3%, then Generali To 6,4% Caltagirone with 4,9%, Blackrock at 3,9%, and the Treasury at 2,3%. Intermediate scenarios are also interesting, as the two takeovers are independent of each other. If only the one on Banco Bpm goes through, Crédit Agricole would rise to 12,5%, Delfin to 9,6% and Caltagirone to 5,6%. If only the takeover bid for Banca Generali were to succeed, Delfin would be first at 12,9%, then Generali at 9,9%, Caltagirone at 7,6%, the Treasury at 3,6%, Blackrock 3,4% and Banco Bpm at 2,7%.
Generali: MPS intends to purchase, before the meeting, "all Generali shares owned by Mediobanca."
Finally there is the chapter GeneraliLovaglio's plan includes a extraordinary dividend MPS shareholders will receive €4 billion, one billion in cash and three billion in shares of the Lion: at the announced prices, approximately 4,5% of the Trieste-based company. The letter clarifies, however, that Ps intends to buy, before the meeting, “all Generali shares owned by Mediobanca"A transfer functional to the subsequent allocation to shareholders. Except that, at market values, buying approximately 4,5% would be enough to pay the promised coupon. The strategic fate of the just under 9% of Leone therefore remains unclear: the letter, however, makes no mention of a sale, which in theory would be possible following the approval of the shareholders' meeting.
New details also on the crucial MPS meeting on October 29Three inseparable blocks are planned, with three separate votes. The first concerns the takeover bid for Banco BPM and the related capital increase. The second replicates the format for Banca Generali. The third will be triggered if at least one of the offers is approved and includes the reduction of MPS's capital (for the dividend), the acquisition of the Generali stake, and the distribution of reserves, partly in cash and partly in Generali shares.
