The rumor is once again circulating that a marriage between Mps and Ubi Banca is being studied. The problem to be solved in order to carry out the operation regards the conditions of a possible merger: in Bergamo it is required that the merger be carried out at market prices, which entails a favorable position for Ubi and a disadvantage for Mps, after the clear the moon experienced in recent weeks by the Sienese bank's shares, which despite the recovery in the last few sessions, have been in the red by 42% since the beginning of the year.
Banca Mps is worth around 2 billion euros in Piazza Affari, while Ubi capitalizes on over 4,1 billion, even if since the beginning of the year the shares have left around 27% of their value on the floor. In short, a merger at market prices would be penalizing for the Sienese bank. Furthermore, Rocca Salimbeni, according to the quotations on Piazza Affari, is now worth less than its assets, to be exact about 0,2 times its own means. A merger, therefore, would create 'badwill', on which Bergamo asks the authorities for reassurance (for example, by placing a 'merger reserve' in the first balance sheet of the new bank).
Furthermore, Ubi is also asking for guarantees on the liquidity of the new agglomeration, i.e. on the conditions for accessing the market, at least for the next two years. Guarantee that only the ECB itself can give. Still from indiscretions, Victor Massiah, number one of Ubi, is putting his foot down and asking for further conditions to the advantage of his institution. It seems that the manager is willing to guarantee only half of the Sienese institute's senior debts. In short, the negotiations are still on the high seas, with the outcome still to be verified.
However, the marriage between Ubi and Mps would reflect the auspices of the premier, Matteo Renzi, who just in recent days, speaking of the Sienese bank, said: “Monte dei Paschi today is at incredible prices. I think the best solution will be what the market decides. I wish it were Italian, even if whoever comes will get a great deal”.
