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Italy has been saved Monte Dei Paschi di Siena On Friday launched a 13.3 billion euros ($ 13.95 billion) All-Share acquisition offer for a larger domestic pear Mediobanca.
Shares of Monte Dei Paschi (MPS) fell by 5.74% at 9:43 am London, with Mediobanca an increase of 6.28%.
Monte Dei Paschi offers 23 of his shares for 10 of its acquisition objective and appreciates the shares of Mediobanca at approximately € 15,992 each, a premium of 5% for the narrow price of January 23.
The equity of Monte Dei Paschi was worth 8.7 billion euros from January 23, while the market capitalization of Mediobanca was at 12.3 billion euros according to FactSet data.
CNBC has contacted Mediobanca for comments.
Monte Dei Paschi, the world's oldest bank, needed a rescue of the state in 2017 after years of paralyzing losses, but turned the tides of his fortunes led by Unicredit veteran Luigi Lovaglio. The Italian government retains an interest of 11.73% in the lender.
“The transaction could contribute to completing the dynamics of the Italian financial system, in the context of strong consolidation,” said the Italian banking association Fabi after the announcement of the offer, according to a CNBC translation. “MPs, historically in the center of complex events, is now moving in an ambitious direction. The bid confirms, among other things, that MPS has been fully recovered.”
The Friday offer contributes to a photo of heating mergers and acquisitions in the Italian bank and financial service sector, where the second largest bank Unicredit in the country was previously offered to buy out Banco BPMHe in turn tries to acquire Fund Manager Anima Holding. Monte Dei Paschi himself was a potential takeover objective for Unicredit until the conversations recently collapsed in 2021.
– Silvia Amaro and Ganesh Rao from CNBC contributed to this report.
This breaking news story is updated.