Mediobanca's Bold Bid: Securing Independence Amid Hostile Takeovers

Mediobanca launched a €6.3 billion bid to acquire Banca Generali, aiming to reinforce its wealth management sector and assert independence amidst hostile takeover attempts. The move is part of the ongoing conflict with investors while securing shareholder approval remains crucial.

Mediobanca made a significant move on Monday, announcing a €6.3 billion offer to acquire private bank Banca Generali, financed by its stake in insurer Generali. This bold strategy comes amid a surge of hostile bids in Italian finance, with Mediobanca fending off acquisition attempts by state-backed Monte dei Paschi di Siena.

The bank's CEO, Alberto Nagel, aims to bolster the wealth management division by integrating Banca Generali, although previous attempts had been thwarted, escalating tensions with dissenting shareholders in Generali and Mediobanca. Recent shareholder approval retained Philippe Donnet as CEO of Generali, counteracting the influence of rebel investors like Francesco Gaetano Caltagirone and Italy's Del Vecchio family.

Amidst these tensions, Mediobanca seeks shareholder approval for the acquisition on June 16, crucial for navigating the MPS bid. The offer, projected for completion by October's end, values each Banca Generali share at €54.17, a premium to its last market close, aiming to consolidate Mediobanca's wealth management capabilities.

(With inputs from agencies.)