MPS has surpassed two-thirds of Mediobanca, a key threshold that now officially paves the way for the merger between the two institutions, allowing the synergies expected from the plan announced by CEO Luigi Lovaglio to be fully realized, including delisting.
MPS acquires 70,48% of Mediobanca
On the penultimate day of its offer, which will end on September 22, the Sienese bank has 70,48% of the capital of Piazzetta Cuccia has been reached. During Thursday's session, subscriptions jumped nearly 6% from Wednesday's 64,68%. In the first phase of the rally, which concluded on September 8th, MPS had stopped at 62,3%.
The threshold of 66,7%, which was Siena's initial objective and which gives it the qualified control of Mediobanca. And it might not end here: according to the technicians, the offer could end with membership around 80% of the capital, a threshold which was also hypothesized a few days ago by Francesco Saverio Vinci, general manager of Piazzetta Cuccia, and which would give Monte dei Paschi the possibility to proceed without worries on the road towards the merger between the two groups and also to delist Mediobanca, despite the words of the outgoing CEO Alberto Nagel who, in his farewell letter to employees, he underlined how “listed banks” have “much more chances of growing and generating additional returns” when they present “widespread capital” with a strong presence of “institutional investors”.
MPS-Mediobanca: The offer closes definitively on September 22nd.
The picture will be clearer on Monday evening, when the details will be made known. the final acceptances to the offer which, from January 24th to today, has shaken the Italian financial system. It will be at that point that the real options will begin to be understood: on the one hand, the merger, far from a given on the eve of the deal, and the full activation of the synergies, amounting to €700 million, estimated by Siena; on the other, a new takeover bid followed by a residual takeover bid, the latter alternative, however, which currently appears less likely. Furthermore, a high stake will also give MPS greater room for maneuver on the Generali's share, equal to 13,2%, in the belly of Piazzetta Cuccia. Meanwhile, according to ReutersBPCE, which controls Natixis, has reportedly agreed to waive the €50 million penalty it would impose if it backtracked on the agreement signed in January with Trieste-based bank Natixis to create an asset management giant. The deal has met with opposition from its major shareholders, Caltagirone and Delfin, as well as from the government.
MPS working on governance
In the meantime, MPS is already working on the new governance of the institute. Following the resignation of the Mediobanca board of directors, effective from the meeting of October 28, the Sienese bank is already working with advisors Jp Morgan, Ubs and Jefferies on the names to be included in the list of candidates to be submitted by October 3.
