Guilhem Vellut
Monte Paschi announced that the regulator has approved its direct purchase of a controlling interest in Mediobanca and its indirect acquisition of control over the Mediobanca Premier and Compass Bank divisions.
In April, the bank obtained the required approval for the transaction from the Italian regulator.
In January of this year, Monte Paschi proposed to purchase Mediobanca, estimating the rival's worth at €13.3 billion. The bank plans to finance the transaction using its own stock. Mediobanca's board declined the proposal and subsequently revealed plans to purchase Banca Generali for €6.3 billion.
Monte Paschi is required to submit an integration plan for its operations to the ECB within six months of acquiring control of Mediobanca.
The bank has consistently indicated that the agreement depends on the approval of 67% of Mediobanca's shareholders. Nonetheless, it has also suggested that this limit might be reduced.
Should less than 50% of Mediobanca shareholders accept its offer to acquire shares, Monte Paschi must submit an action plan to the Italian regulator within three months.
The combination of Monte Paschi and Mediobanca would result in the third-biggest bank in Italy, following Intesa Sanpaolo and UniCredit.
source: ft.com
In April, the bank obtained the required approval for the transaction from the Italian regulator.
In January of this year, Monte Paschi proposed to purchase Mediobanca, estimating the rival's worth at €13.3 billion. The bank plans to finance the transaction using its own stock. Mediobanca's board declined the proposal and subsequently revealed plans to purchase Banca Generali for €6.3 billion.
Monte Paschi is required to submit an integration plan for its operations to the ECB within six months of acquiring control of Mediobanca.
The bank has consistently indicated that the agreement depends on the approval of 67% of Mediobanca's shareholders. Nonetheless, it has also suggested that this limit might be reduced.
Should less than 50% of Mediobanca shareholders accept its offer to acquire shares, Monte Paschi must submit an action plan to the Italian regulator within three months.
The combination of Monte Paschi and Mediobanca would result in the third-biggest bank in Italy, following Intesa Sanpaolo and UniCredit.
source: ft.com
