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Italy’s bailed-out Monte dei Paschi di Siena on Friday launched a 13.3 billion euro ($13.95 billion) all-share takeover bid for its larger domestic peer Media Bank.
Offering 23 of its shares for 10 of the acquisitions, Monte dei Paschi values Mediobanca shares at around €15,992 each, representing a 5% premium to the January 23 closing price.
As of the close of trading on January 23, Monte dei Paschi’s capital was worth 8.7 billion euros, while Mediobanca’s market capitalization was 12.3 billion euros, according to FactSet data.
Monte dei Paschi, the world’s oldest bank, sought a state rescue in 2017 after years of crippling losses, but has turned its fortunes around under UniCredit veteran Luigi Lovaglio.
The offer increases appetite for mergers and acquisitions in Italy’s banking and financial services sector, where the country’s second-largest bank UniCredit has previously offered to buy BPM Bankwhich in turn seeks to acquire the fund manager Anima Holding.
— CNBC’s Ganesh Rao contributed to this report.
This breaking news is being updated.
