Market volatility will not affect Mediobanca: CEO Monte Dei Paschi

Siena, Italy – Monte Dei Paschi Di Siena Keeps a firm part of his plans to acquire Mediobanca For 13 billion euros (14.3 billion dollars), despite the permanent turbulence in the market, informing CNBC that it will complete the transaction in July.

The world’s oldest bank still works, surprised investors in January, doing Offer All Share for MediobancaA prestigious rich management institution and investment banking. Mediobanca rejected the sentence by announcing her as “devastating” move, deprived of financial justification.

Monte Dei Paschi has encountered multiple problems over the years, first and foremost when it was rescued In 2017, the Italian government, after it was unable to raise the so much money from private investors. The Italian government has sold its most stocks in Monte -dei Pasta, and it currently accounts for less than 12% of the property.

CEO Luigi Luigi Luija Bank told CNBC on Monday that Monte Day Peap was “returned” and “control our fate”.

Asked if the market is constant turbulence to become a problem for its expansion, Lavalio said: “(Market) situation will not affect our deal. “

“On the contrary, (the situation with the market) confirms that the size matters (it) confirms that you need to diversify the income,” he said, adding that if they were already combined, they will be “stronger” and “have the opportunity to respond much faster.”

The recent market volatility has forced some companies to stop some transactions. British private capital firm 3I Group PLC has justify Said Sale Manufacturers Pet Food MPM, while Fintech Klarna put its IPO plans to hold.

Analysts were divided in favor of the transaction between the Monte Past and Media Bank. For example, Deutsche Bank said in mid-March the market ignores some potential opportunities for Monte Dea Past, including greater distribution policies.

Other analysts have warned of limited synergies combined by two different banks. For example, Barclays said on Monday that it lowers the target price for Monte Deusy, making a more skeptical idea of ​​potential revenue from Mediobanca. “If Monte Deusya Pasta decides to spend more to convince most Mediobanca institutional shareholders, extra capital can reduce,” Barclays said.

Speaking in front of CNBC, Lovaglio was an unwavering offer of Mediobanca represents a “fair price” and does not comment on whether the company will sweeten the deal to make it more attractive to Mediobanca shareholders.

“Hopefully, during July, we can complete the deal,” he added.

On Monday, against the backdrop of retreat in the world markets, Monte Dei Paschi and Mediobanca closed 5% below. Since Monte -Deity Pavals announced the intention of buying Mediobanca on January 24, the latter lost about 14% of the cost, and the first about 8.5%.

The Monte -Deity’s offer on Mediobanca came during the more extensive consolidation efforts in the Italian banking business. Primit announced last year propose To buy a competitor Bank BPM for about 10 billion euros.

Lovaglio said these applications are the first wave of internal consolidation for Italian banks.

“I believe that this is the first stage (consolidation), and probably we will have the second phase in two years. That is why, when combining Monte (Dei) pastures, we will be able to become the main character again,” Lovalio said.