Quote from Alex bobby on September 3, 2025, 5:00 AM

MPS Relaunches Bid for Mediobanca with €13.5 Billion Partial-Cash Offer

The Italian banking sector is once again in the spotlight as Monte dei Paschi di Siena (MPS) reignites its pursuit of Mediobanca, unveiling a refreshed €13.5 billion takeover bid that combines shares with a partial cash component. The move marks a critical turning point for the Sienese bank, which is seeking to solidify its presence in Italy’s financial landscape and regain long-term competitiveness after years of restructuring.

A Renewed Offer with New Terms

MPS announced on Tuesday that it had approved an updated offer for Mediobanca, one of Italy’s most influential financial institutions. The revised bid includes an additional €0.9 in cash per Mediobanca share, raising the overall cash commitment to roughly €750 million. This enhancement comes on top of the shares being offered, bringing the total value of the bid to €13.5 billion.

Alongside the sweetened financial terms, MPS also reduced the threshold for the takeover’s validity from 66.7% to 35% of voting shares, a significant concession aimed at ensuring broader acceptance. By lowering the bar, MPS appears determined to remove any obstacles that could derail the deal, signalling its willingness to compromise in order to secure control.

Mediobanca Back in the Financial Headlines

Mediobanca, the Milan-based institution with deep roots in Italian finance, has once again become a focal point of corporate intrigue. Known historically for its strategic role in industrial financing and its influential founder Enrico Cuccia, Mediobanca has long been considered a cornerstone of Italy’s banking system.

Earlier this year, MPS’s attempt to strengthen itself through the acquisition of Banca Generali fell through, largely due to resistance from key stakeholders. The renewed Mediobanca bid represents a pivot in strategy, placing the bank squarely back at the centre of the financial chronicle.

The Strategic Rationale

According to MPS, the transaction’s objectives remain unchanged: to enhance its industrial profile, safeguard capital strength, and maintain a generous dividend policy that can rival the best in the sector. In a press release, the bank stated:

“The financial objectives remain unchanged, aimed at maintaining strong capital strength and a dividend policy at the highest level in the sector, in the conviction that the commitment and the expected results will be appreciated by all stakeholders.”

The board of MPS added that the relaunch demonstrates the “industrial value of the transaction” and reflects its attention to the market. The goal is to maximise take-up of the offer and accelerate value creation, underscoring the bank’s long-term vision.

Market Reactions and Initial Setbacks

Despite the ambitious relaunch, the immediate market reaction was muted. On Tuesday, at the opening of Milan’s Piazza Affari, both MPS and Mediobanca shares fell by around 2%, signalling investor caution.

Analysts believe the success of the bid is not necessarily in jeopardy, but stress that the market’s response will be decisive. The involvement of key shareholders is expected to play a central role in determining the outcome.

The Role of Key Shareholders

Two of Mediobanca’s largest shareholders, Delfin (the holding company of the late Leonardo Del Vecchio’s heirs) and Caltagirone, together control about 30% of Mediobanca. They also hold nearly 20% of MPS, positioning them as pivotal actors in the takeover drama.

These two shareholders were instrumental in blocking the previous plan to acquire Banca Generali, instead expressing favour for a stronger tie-up with Mediobanca. With their backing, the relaunch of the MPS offer appears to have a solid foundation.

Institutional investors who collectively own around 10% of Mediobanca are widely expected to align with Delfin and Caltagirone, further tilting the balance in favour of the deal.

Analysts’ Take: Risks and Opportunities

Financial analysts suggest that the MPS offer reflects both determination and pragmatism. By adding a cash incentive and lowering the acceptance threshold, MPS is showing flexibility in its bid to win over shareholders.

Still, challenges remain. Market volatility, regulatory scrutiny, and integration risks could complicate the process. Mediobanca has historically prided itself on independence and strategic influence, which raises questions about how the bank would operate under MPS’s umbrella.

From a strategic standpoint, however, the deal could reshape Italian banking by creating a stronger player with greater scale, diversified revenue streams, and enhanced capital strength.

Historical Weight and Symbolism

The potential merger carries symbolic significance. MPS, founded in 1472, is the world’s oldest surviving bank and a historic symbol of Siena. Mediobanca, founded in 1946, is equally iconic, having played a decisive role in Italy’s post-war industrial development. The union of these two institutions would represent not only a financial transaction but also a fusion of legacies, intertwining centuries of Italian banking tradition with modern restructuring ambitions.

The Road Ahead

With the revised bid valid until 8 September, the coming weeks will be critical. Shareholder responses, regulatory feedback, and market performance will determine whether the transaction gains the momentum it needs.

If successful, the takeover could mark a watershed moment in Italian banking, positioning MPS as a revitalised player capable of challenging larger rivals. If it fails, however, it could deal another blow to the bank’s credibility and highlight the persistent difficulties facing consolidation in the sector.

Final Thought / Looking Forward:
The relaunch of MPS’s €13.5 billion bid for Mediobanca highlights the shifting dynamics in Italian banking, where consolidation is seen as the path to strength and stability. Looking forward, the response from key shareholders and regulators will determine whether this bold move becomes a transformative milestone or another missed opportunity in the long history of Italy’s financial sector.

Conclusion: A Bold but Risky Gambit

Monte dei Paschi’s relaunch of its €13.5 billion bid for Mediobanca illustrates both ambition and necessity. By sweetening the offer with cash and easing the takeover threshold, MPS is pulling out all the stops to secure a deal that could redefine its future.

Yet, as the initial market reaction shows, investors remain cautious. While support from key shareholders like Delfin and Caltagirone provides a strong foundation, the success of the bid will ultimately depend on broader market sentiment and the ability of MPS to convince stakeholders that the transaction will deliver long-term value.

For now, Piazza Affari—and the rest of Europe’s banking sector—will be watching closely. The outcome of this bid will not only determine the fate of two iconic institutions but may also shape the future trajectory of Italian finance itself.

Meta Description:
Monte dei Paschi di Siena has raised its bid for Mediobanca to €13.5bn, adding €0.9 per share in cash and lowering the takeover threshold to 35%. Piazza Affari reacts with losses.