Intesa raises MPS bid by 800 million euros and demands rejection of counter plan

Increased cash offer

Intesa Sanpaolo raised the cash component of its takeover offer for Banca Monte dei Paschi di Siena on Saturday, adding 25 euro cents per share. The revision lifts the cash payout to 1.25 euros per MPS share, up from the previous 1.00 euro component, on top of the 1.6 newly issued Intesa shares offered for each MPS share tendered. In the event of full acceptance, the total value of the offer reaches 31.4 billion euros. This overall consideration comprises 27.6 billion euros in Intesa equity and 3.8 billion euros in direct cash payouts. The board of directors approved the revised terms during an extraordinary meeting, adding 800 million euros (900 million dollars) to the cash total.

Shareholder vote ultimatum

The board of Intesa, led by Chief Executive Carlo Messina, linked the improved financial terms to the rejection of rival transactions at the upcoming MPS shareholder meeting on 29 October. MPS Chief Executive Luigi Lovaglio outlined a competing expansion plan in August, seeking approval to launch separate all-share takeover bids for Banco BPM and wealth manager Banca Generali. Italian takeover rules mandate that Lovaglio obtain shareholder clearance before proceeding with those acquisitions. Intesa warned that if MPS investors approve either takeover or authorize a voluntary capital reduction for an extraordinary distribution, the bank will withdraw its offer.

Intesa stated its legal stance regarding the conditions of the tender:

Intesa Sanpaolo does not intend to exercise the right to waive the conditions... and will claim for their non-fulfilment.

Competing strategies

Following its extraordinary board session, Intesa criticized the strategic architecture of the counter plan proposed by MPS headquarters at Rocca Salimbeni. Intesa asserted that Lovaglio's dual takeover project offers no premium to target shareholders, carries execution risks, and relies on challenging synergies. By comparison, Intesa argued that its own public exchange and purchase offer delivers certain, immediate, and sustainable financial value to MPS investors. The Milan-based bank also announced plans to pair the transaction with dedicated economic initiatives in Siena and Tuscany. Intesa confirmed that the exchange ratio will adjust upward if it pays an interim dividend for 2026.

Timeline to the October decision

The corporate battle began in June when Intesa unveiled its initial takeover bid for MPS, the largest among a dozen Italian banking transactions over the past two years. Lovaglio answered in August with the counter strategy, which also involves discussions regarding a 13% holding in Generali from Mediobanca. The extraordinary assembly on 29 October will vote on items three through five of the revised meeting agenda published on 24 September. If shareholders reject Lovaglio's three proposals, Intesa will proceed with the revised 31.4 billion euro tender. If shareholders pass any of those proposals, Intesa will declare its bid ineffective and terminate the acquisition attempt.