Italian bank Mediobanca rejects takeover bid by domestic rival Monte dei Paschi Italian bank Mediobanca on Tuesday rejected a surprise takeover attempt by domestic rival Monte dei Paschi di Siena.
Monte dei Paschi, Italy’s oldest bank, launched a 13.3 billion-euro ($13.9 billion) takeover bid last week for larger Milan-based peer Mediobanca that aims to reshape the Italian banking sector.
The buyout offer came after the Italian government moved to reprivatize the once-troubled Monte dei Paschi, whose largest shareholder has been the Italian Treasury since an expensive bailout in 2017.
Monte dei Paschi said that the tie-up would generate 700 million euros ($733 million) a year in pretax synergies, and deliver significant profits.
But Mediobanca said that the offer compromises its “identity and business profile, which is focused on high-value-added business segments with clear growth trajectories,” and that it would destroy shareholder value at both banks.
