Mediobanca's Bold Move: A €6.3B Offer to Strengthen Independence

Mediobanca launches a €6.3 billion bid for Banca Generali, attempting to stave off a takeover by Monte dei Paschi di Siena. This strategic move aims to double its wealth management revenues and reshape its relationship with Generali from a financial investment to an industrial partnership.

Mediobanca, an Italian financial entity, announced a bold €6.3 billion bid for Banca Generali on Monday, seeking to cement its independence amidst looming threats of a takeover by Monte dei Paschi di Siena. This ambitious offer is set to be financed using Mediobanca's significant stake in the insurer Generali.

The deal, aligned with CEO Alberto Nagel's longtime aspirations, would effectively double Mediobanca's wealth management revenues, if successful. Overcoming previous failed attempts, this acquisition marks a pivotal moment in Mediobanca's strategic endeavor to shift its partnership with Generali from mere financial investment to a robust industrial alliance.

Following shareholder approval set for June 16, Mediobanca anticipates completing the exchange offer by the end of October, marking a significant 11% premium over Banca Generali's last share price. However, opposition from influential shareholders like Delfin and Francesco Gaetano Caltagirone remains a challenge.

(With inputs from agencies.)