MILAN (Reuters) – Mediobanca (OTC:)’s board will meet on Tuesday to debate a bid for the Italian service provider financial institution by state-backed Monte dei Paschi di Siena (MPS), an individual near the state of affairs stated.
On Friday, MPS joined the consolidation wave sweeping Italian banking with a 13.3 billion euro ($13.96 billion) all-share supply to purchase Mediobanca, which was welcomed by the Italian authorities, however puzzled analysts and traders.
In a letter despatched to employees on Saturday and seen by Reuters, Mediobanca’s Chief Government Alberto Nagel stated the MPS supply had not been agreed with the financial institution and that the board would specific its views, with the goal of defending the pursuits of all stakeholders, notably staff.
On Friday, an individual near the state of affairs instructed Reuters that MPS supply was not pleasant, although not sudden.
MPS is providing 23 of its personal shares for each 10 Mediobanca shares tendered, representing a 5% premium to Thursday’s closing price. Nonetheless MPS shares misplaced 7% on Friday, which means the supply now implies a 1.2 billion euro low cost to the market price.
($1 = 0.9530 euros)