Mediobanca stock falls as Intesa hardens stance on MPS deal

Mediobanca's stock plummeted by 7.5% on Monday following Intesa Sanpaolo's intensified efforts in its tender offer for Monte dei Paschi di Siena (MPS). The Italian banking giant expressed a more skeptical view of a potential merger between MPS and Mediobanca. The bank urged MPS shareholders to vote against the merger and subsequent spin-offs, contending that a merger with Mediobanca should ideally occur post the completion of the tender offer.

However, Intesa lifted the condition for the offer to become effective, meaning that a MPS shareholder vote against the merger would not invalidate the tender offer. Intesa raised its cash contribution to the MPS offer from €1.00 to €1.25 per share, while preserving the exchange ratio of 1.6 Intesa shares for every MPS share. Intesa clarified that it will not waive the conditions for the tender offer's effectiveness and will deem them unfulfilled if MPS's extraordinary shareholders' meeting on October 29 approves items concerning public tender offers for Banco BPM and Banca General, capital increases, or the voluntary capital reduction for extraordinary distribution.

If such items are approved at the meeting, Intesa would invoke its right to render the offer ineffective. This report was produced with artificial intelligence assistance and scrutinized by a human editor.