Banco BPM faces takeover bid from Monte Paschi with no premium

Banco BPM SpA received an unsolicited takeover offer from Banca Monte dei Paschi di Siena SpA that does not include a premium for its shareholders, the lender announced on Tuesday. Despite not having prior agreement, Monte Paschi proposed to buy Banco BPM and Banca Generali SpA, valuing them at €25.3 billion and €8.7 billion respectively.

The offer for Banco BPM was close to the market price, while the one for Banca Generali included a 10% premium. If successful, these transactions could create Italy's third large bank, preventing Monte Paschi's own acquisition attempt by the largest lender, Intesa Sanpaolo SpA. Banco BPM's CEO, Giuseppe Castagna, previously suggested a merger of equals to Monte Paschi but later abandoned the idea. The board will evaluate the offer and announce its decision in accordance with legal requirements.