The dual public swap offer launched by Monte dei Paschi di Siena for Banco Bpm and Banca Generali was received coldly by the market, with analysts skeptical about the risks of executing the operation, considered complex and uncertain, according to the newspaper Il Sole 24 Ore. Monte dei Paschi shares are rising, while Banco Bpm and Banca Generali are falling. Intesa Sanpaolo, which is vying for control of the Siena bank, is also gaining ground.
At current prices, Monte dei Paschi's offer for Banco BPM is at a 0,5% discount, and its offer for Banca Generali has a 10,1% premium. Intesa Sanpaolo's offer has a 1,2% premium. An analyst interviewed by the Radiocor agency said that the operation seems more like a defensive maneuver than a solid industrial plan. The exchange is entirely in shares, without cash.
Equita, the advisor to Intesa Sanpaolo in the offering, highlighted that the decision was approved by a majority vote in the Siena board, with four directors abstaining, which would indicate disagreements in governance. According to the brokerage firm, the main problem is the high execution risk, since Monte dei Paschi would have to simultaneously manage the integration of Mediobanca, the merger with Banco BPM, and the purchase of Banca Generali.
Read the original article in Italian in the newspaper. Il Sole 24 Ore .
