Monte dei Paschi says Intesa’s raised offer still too low

Monte dei Paschi di Siena has rejected Intesa Sanpaolo's increased takeover offer, arguing the premium remains below the norm for similar Italian bank mergers. Following a board meeting, the bank stated the proposal would still leave shareholders reliant on Intesa's performance, as consideration is mainly in the form of shares. Intesa recently raised its cash portion of the offer by €0.25 per Monte dei Paschi share, increasing the total to €3.8 billion ($4.24 billion) from €3 billion.

With Intesa's share price from the June bid, the offer is now worth €31.4 billion, up from €30.6 billion. This prompted Monte dei Paschi to launch rival takeover proposals for Banco BPM and Banca Generali, valued together at nearly $40 billion, ahead of a shareholder vote later this month. Intesa pledged to withdraw its offer if shareholders back the alternative plans.

Monte dei Paschi emphasized its board and management will continue to act in shareholders' best interests, exploring all options to safeguard holdings and maximize value. Both companies' shares rose around 1% in early Tuesday trading.