Caltagirone rejects Monte dei Paschi defense plan, boosting Intesa takeover bid

FGC rejects Siena's defensive measures

The board of Italian entrepreneur Francesco Gaetano Caltagirone's holding company, FGC, unanimously decided on 8 October to oppose every extraordinary measure proposed by Banca Monte dei Paschi di Siena. The resolutions, scheduled for a shareholder vote on 29 October, include proposed exchange offers for Banco BPM and Banca Generali as well as a merger with Mediobanca. FGC stated that its board fully accepted the assessments of its independent directors committee alongside advice from Professor Giovanni Fiori. The holding company directed that these assessments and determinations be communicated to directly and indirectly controlled subsidiaries so they can consider them, while preserving each entity's deliberative autonomy. Sources report Caltagirone's stake in Monte dei Paschi at between 10.26% and 13.5%, positioning the group as the bank's second-largest investor. If tendered into Intesa Sanpaolo's offer, the holding would convert into approximately 0.7% of Intesa's equity.

Consolidation of the pro-Intesa shareholder bloc

Caltagirone's opposition reinforces an investor coalition backing Intesa Sanpaolo's improved 35 billion euro public exchange offer for Monte dei Paschi. The Del Vecchio family's holding vehicle, Delfin, has committed its 17.6% stake in the Tuscan lender to Intesa's bid. The Benetton family vehicle, Edizione, which controls a 1.45% stake in the bank, endorsed Intesa's proposal on 7 October. Alessandro Benetton noted that he holds the authority to convert his autonomous declaration into a binding commitment if required by regulations, after discussions with Intesa chief executive Carlo Messina:

I greatly appreciated that Carlo Messina emphasized that the operation promoted by Intesa Sanpaolo will represent significant value in terms of shareholding stability and the independence of Generali.

Together, Delfin, Caltagirone, and Edizione account for more than 32% of Monte dei Paschi's capital, creating an obstacle for the Tuscan lender's standalone strategy.

Lovaglio's strategy and institutional fund holdings

Monte dei Paschi chief executive Luigi Lovaglio presented the acquisitions in August as part of a broader strategy to maintain the bank's independence against Intesa's approach. Intesa has stated that it will retract its 35 billion euro offer if Monte dei Paschi shareholders approve Lovaglio's defensive plan. With key domestic industrial shareholders aligned against the defensive acquisitions, Lovaglio is focusing on institutional investment funds, which hold approximately 40% of the Siena lender's share capital. Proxy advisory firms ISS and Glass Lewis are expected to provide voting recommendations to asset managers by 12 October or earlier. Lovaglio also faces an internal board briefing scheduled for Thursday 15 October, where he plans to provide directors with information regarding the offers following Intesa's improved bid.

Proposed asset distributions and shareholder meeting schedule

Management has evaluated counter-proposals to persuade institutional investors ahead of the scheduled vote. Options under discussion include distributing Monte dei Paschi's stake in Assicurazioni Generali, reported between 13.2% and 13.3% and valued at 8.6 billion to 9 billion euros, directly to shareholders. That structure could deliver an extraordinary dividend of roughly 2.9 euros per share alongside a distribution of excess capital between 2 billion and 2.5 billion euros. If the proposal to distribute the Generali holding materializes, the 29 October shareholder meeting could be postponed. Meanwhile, Italian publication Affari Italiani reported that Assicurazioni Generali evaluated a potential total takeover of Banca Generali to take the asset manager private.