The board of Banca Monte dei Paschi di Siena will meet Monday to reassess its position after shareholder opposition weakened management’s defense against a €35 billion takeover bid from Intesa Sanpaolo.
People familiar with the situation told Reuters the board will examine the latest developments surrounding the offer, although it remains unclear whether directors will consider additional defensive measures.
The takeover battle shifted materially during the past week.
Intesa said it would increase the cash component of its offer by 25% if Monte dei Paschi shareholders rejected the defense strategy proposed by Chief Executive Luigi Lovaglio.
That strategy now faces a major mathematical obstacle.
Shareholders representing approximately 30% of Monte dei Paschi’s capital have indicated they will not support the plan.
Lovaglio needs a two-thirds majority at an October 29 shareholder meeting to approve it.
Opposition from investors holding around 30% therefore makes reaching that threshold effectively impossible unless positions change.
The transaction is another major step in the consolidation of Italy’s banking sector, where years of restructuring have strengthened balance sheets and revived interest in combinations among large lenders.
For Intesa, acquiring Monte dei Paschi would significantly expand an already dominant domestic banking franchise.
For Monte dei Paschi, Monday’s board meeting will determine whether management continues resisting the offer or adjusts strategy after losing critical shareholder support.
The next milestones are Monday’s board deliberations, any revised takeover terms from Intesa and the October 29 shareholder vote.
