Intesa Sanpaolo lines up €33 billion bid for Monte Paschi this month

Timeline and launch

Intesa Sanpaolo is preparing a €33 billion bid for Monte Paschi and, per people with knowledge of the plan who requested anonymity because it isn't public, aims to begin the offer during the week that starts on Nov. 23. The schedule could change, and an Intesa spokesperson declined to comment.

Approvals and conditions

Italy's largest bank received the final regulatory authorizations on Oct. 28, starting a 10-day window for market watchdog Consob to vet the offer document. If approved, Intesa would be able to release the documents and commence the tender window. Competition sign-off remains pending, yet it isn't required to kick off the offer.

Shareholder backdrop

CEO Carlo Messina is proceeding after Monte Paschi shareholders last week turned down an alternative plan. CEO Luigi Lovaglio had floated acquisitions of Banco BPM SpA and Banca Generali SpA; however, over 90% of the ballots cast voted down both transactions. The rejection was "clear and by a significant margin," Messina said Friday. "There was absolute consensus to move forward with our offer."

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What a successful bid would change

Should the offer prevail, it would realign Italy's financial landscape and give Messina the helm at Monte Paschi, as well as at Mediobanca - where the Tuscan lender holds about 86% - and it would also confer roughly a 13% stake in Assicurazioni Generali SpA. The immediate procedural milestones are Consob's 10-day approval period for the offer document, after which Intesa could publish it and open the tender, alongside an antitrust review that is still outstanding but not required to launch.

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