Italy prioritises MPS-BPM merger to reduce stake in MPS – report

Italy is prioritising a imaginable merger of Monte dei Paschi di Siena (MPS) and Banco BPM to trim its shareholding successful MPS, reported Reuters, citing sources.

The authorities volition clasp its remaining 4.9% involvement successful MPS, arsenic the slope proceeds with the integration of its precocious acquired competitor, Mediobanca.

Italy primitively acquired a 68% involvement successful MPS pursuing a 2017 bailout and has since reduced its stock done a bid of placements.

The caller acquisition of Mediobanca by MPS, which was partially paid for with recently issued shares, dilutes the stakes held by existing MPS investors.

Italy’s existent shareholding successful MPS already satisfies the re-privatisation commitments agreed with the European Commission arsenic portion of the bailout process.

However, the authorities continues to prosecute a long-standing program to merge MPS with Banco BPM, contempt erstwhile setbacks, said the report.

In November past year, UniCredit’s bid for BPM disrupted the projected MPS-BPM consolidation, which was shelved since then.

Banco BPM CEO Giuseppe Castagna stated that BPM is considering 2 merger options, MPS and France-based Credit Agricole.

Currently, BPM holds a 3.7% involvement successful MPS, portion Credit Agricole is BPM’s largest capitalist with a 20.1% involvement and is besides a commercialized partner.

Credit Agricole accrued its BPM involvement with support from Rome to assistance BPM defy UniCredit’s advances, thereby maintaining power implicit aboriginal strategical moves.

MPS volition beryllium focused connected integrating Mediobanca successful the adjacent term. However, erstwhile the integration is completed, the Treasury is prepared to see supporting a caller merger involving MPS, peculiarly focused connected Banco BPM.

Credit Agricole has engaged Deutsche Bank and Rothschild arsenic advisers connected a imaginable merger of its Italian operations with Banco BPM.

However, structuring a woody that satisfies some BPM shareholders and the French slope remains challenging, radical acquainted with the substance told Reuters.

"Italy prioritises MPS-BPM merger to trim involvement successful MPS – study " was primitively created and published by Retail Banker International, a GlobalData owned brand.

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