MPS takeover bid by Intesa gets shareholder boost

Intesa Sanpaolo's bid to take over Italy's Monte dei Paschi di Siena gained support after major MPS shareholders moved against a rival plan from the bank's management.

Intesa raised its offer for MPS to 31 billion euros, or $35 billion, on Saturday. Delfin, the holding company of the Del Vecchio family, which owns 17.6 percent of MPS, then gave the offer key backing.

On Thursday, the holding company of construction magnate Francesco Gaetano Caltagirone, which holds 13.5 percent of MPS, said it would oppose MPS management's alternative proposal. That plan would have MPS buy both Banco BPM and wealth management firm Banca Generali, blocking Intesa's takeover bid.

MPS shareholders are due to vote on the rival plan on October 29. Credit Agricole, which holds 29.3 percent of Banco BPM, said Thursday that it would not back the MPS proposal.

Olivier Gavalda, chief of Credit Agricole, said on a video call that the bank would be “very active” in Italy and would assess the best scenario and timing.

Equita, a financial services firm advising Intesa, calculated that shareholders favouring Intesa's offer now represent nearly 33 percent of MPS capital.

MPS was founded in Tuscany in 1472 and was rescued in 2017 by a 5.4-billion-euro state-led rescue. The Italian government still owns 4.86 percent of the bank and has not commented on the consolidation talks.

MPS shares were down 2.22 percent at 10.93 euros in afternoon trading on the Milan Stock Exchange on Thursday.