Mediobanca, an Italian bank, has announced a 6.3 billion euro ($7.15 billion) offer to buy Banca Generali, another private bank. To pay for this deal, Mediobanca plans to use its shares in the insurance company Generali.
This bid comes amid a time of unusual takeovers in Italy’s banking sector. Mediobanca itself is a target for a takeover by the state-backed bank Monte dei Paschi di Siena (MPS), and Mediobanca is trying to stop this.
Mediobanca’s CEO, Alberto Nagel, has long wanted to buy Banca Generali to improve Mediobanca’s wealth management business. Although he tried to do this before without success, this move comes after a recent victory against two rebel investors who were opposing the management of both Mediobanca and Generali.
The two rebel investors, Francesco Gaetano Caltagirone and the Del Vecchio family’s investment group, have also invested in MPS and support its bid to buy Mediobanca.
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Mediobanca’s offer to buy Banca Generali still needs approval from its shareholders, which will be voted on June 16. Mediobanca owns more than 13% of Generali, making it the largest shareholder, and this stake is worth about 6.5 billion euros.
The offer for Banca Generali is priced at 54.17 euros per share, which is 11% higher than its most recent price. Mediobanca plans to complete the deal by the end of October, with the goal of merging Banca Generali into its own wealth management division.
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