Italy's Mediobanca rejects Monte dei Paschi's 'destructive' 13-billion-euro takeover bid

Published On Jan 28, 2025, 7:59 AM

Mediobanca has rejected a 13-billion-euro takeover bid from Monte dei Paschi, stating that the offer lacks financial and industrial rationale and would compromise Mediobanca's identity. Monte dei Paschi, which has struggled financially in the past and received state bailout, proposed the all-share deal amid increased consolidation pressure in the Italian banking sector. Following the news, shares of both Mediobanca and Monte dei Paschi fell slightly, raising questions about the strategic merits of the proposed merger.