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Italy’s bailout Monte dei Paschi di Siena launched a 13.3 billion euro ($13.95 billion) all-stock takeover bid for its larger domestic peers on Friday. Medio Bank.
Monte dei Paschi exchanged 23 shares for 10 shares of the acquisition target, valuing Mediobanca shares at approximately 15.992 euros per share, a 5% premium to the closing price on January 23.
FactSet data shows that as of the close of trading on January 23, Monte dei Paschi’s equity value was 8.7 billion euros, while Mediobanca’s market capitalization was 12.3 billion euros.
Monte dei Paschi, the world’s oldest bank, needed a state bailout in 2017 after years of deep losses, but it UniCredit Bank Veteran Luigi Lovallio.
The offer further strengthens the interest in mergers and acquisitions in Italian banks and financial services. UniCredit, the country’s second largest bank, had previously offered to acquire all shares of Italian banks and financial services. BPM Bankthe company then sought to acquire fund management company Anima Holding.
— CNBC’s Ganesh Rao contributed to this report.
This breaking news story is being updated.