Pedestrians go outside in the Bank Banca Monte Dei Paschi DI Siena Spa branch in Milan, Italy.
Alessia Pierdomenico Getty images
Siena, Italy – Monte dei Paschi di Siena is heavily maintained on his purchase plans Mediobanca For EUR 13 billion ($ 14.3 billion), despite the ongoing market turbulence, informing CNBC, this will end the contract in July.
The world's oldest bank still operating, surprised investors in January, creating All Mediobanca offerThe prestigious institution focused on property management and investment banking. Mediobanca rejected the proposal, condemning her as “destructive” Movement, which is deprived of financial justification.
Monte dei Paschi had a few challenges ahead of years saved by the Italian government in 2017, after it did not collect much needed cash from private investors. The Italian government has sold its majority participation in Monte dei Paschi and currently constitutes less than 12% of ownership.
The general director of Bank Luigi Lovaglio told CNBC on Monday that Monte dei Paschi “returns” and “control of our destiny”.
Lovaglio said he asked if ongoing market turbulence could be a problem with expansion plans: “The (market) situation will not affect our contract. “
“On the contrary, (market situation) confirms that the size is relevant, (this) confirms that you need to diversify revenues,” he said, adding that if they were already a combined unit, they would be “stronger” and “they could react much faster.”
Recently market variability prompted some companies to suspend some offers. British company private equity 3I PLC group has apparently postponed the sale of the MPM manufacturer with food IPO Plans Suspended.
Analysts were divided into the benefits of the contract between Monte dei Paschi and Mediobanca. For example, Deutsche Bank said that in mid -March the market ignores the potential capabilities of Monte dei Paschi, including a greater distribution policy.
Other analysts warned against limited synergs in the merger of two different banks. For example, Barclays said on Monday that he reduced the target price of Monte dei Paschi, adopting a more skeptical look at the potential benefits of the contract with Mediobanka. “If Monte dei Paschi decides to spend more on convincing the majority of Mediobanca institutional shareholders, the surplus of capital may decrease,” said Barclays.
In an interview with CNBC Lovaglio there was a adamant Mediobanca offer, presents a “honest price” and did not comment on whether the company would sweeten the contract to make it more attractive for Mediobanca shareholders.
“I hope that we can end the contract in July,” he added.
On Monday, among the global capital markets, Monte dei Paschi and Mediobanca divide about 5% lower. Since Monte dei Paschi announced the intention to buy Mediobanca on January 24, the shares of the latter lost about 14% of their value, and the first about 8.5%.
Greater ambitions
The Monte dei Paschi offer at Mediobanca appeared during wider consolidation efforts in Italian banking. Unicredit announced last year offer buy a rival Bank BPM for around 10 billion euros.
Lovaglio said that these offers are the first wave of national consolidation for Italian banks.
“I think that this is the first phase (consolidation) and we will probably have the second phase in two years. That is why, combining Monte (Dei) Paschi with Mediobanka, we will be able to be a hero again,” said Lovaglio.