Investing.com -- Banca Monte dei Paschi di Siena pushed back against Intesa Sanpaolo's raised takeover offer, after the suitor warned it could withdraw the bid if Monte dei Paschi shareholders back alternative deals later this month.
Following a board meeting Monday, Monte dei Paschi said the premium in Intesa's offer remains below the average in comparable Italian bank deals. Its board also said the proposal would still leave shareholders exposed to Intesa's performance, since the consideration is mostly shares.
Earlier this month, Intesa said it would raise the cash component of its cash-and-stock offer by €0.25 per Monte dei Paschi share, to a total of €3.8 billion ($4.24 billion) from €3 billion. Based on Intesa's share price when it launched the bid in June, the total offer is now valued at €31.4 billion, up from €30.6 billion.
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Intesa's approach prompted Monte dei Paschi to launch its own takeover proposals in August for Banco BPM and Banca Generali, valued together at nearly $40 billion, as a way to fend off the suitor. Monte dei Paschi shareholders vote on those bids later this month. Intesa said it would pull its offer if they back the rival deals.
Monte dei Paschi said Intesa was asking its shareholders to abandon the alternative plan without any certainty that the proposed merger would go ahead as expected.
"MPS board and its management will continue to work in the interest of shareholders, evaluating and pursuing any initiatives to protect investors' holdings and maximise their value," it said.
Shares in Monte dei Paschi and Intesa rose about 1% in early Tuesday trading.
Original Article
Monte dei Paschi says Intesa's raised offer still too low
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