BPM: “The conditions for a deal with MPS are not in place.” Siena: “We take note of that; we will now consider every option.”
Piazza Meda: ‘We’ll now carry on independently.’ Montepaschi: ‘We’re focused on our growth plan.’
Talks with MPS have been called off. The board of directors of Banco BPM has concluded that ‘the conditions for reaching a mutually agreed settlement between the parties have not yet been met’ with regard to a potential merger between the Bank and Banca Monte dei Paschi di Siena. The statement comes almost two months after the request to initiate talks, made in a letter sent on 7 June. According to a statement from the bank, this “whilst reaffirming the strong strategic and industrial rationale” of the proposed project, “which could have led to the creation of a new leading banking and financial group in Italia, generating significant value for both banks”.
The Board of Directors of Banco BPM has therefore unanimously resolved “to discontinue consultations regarding the potential merger” between the bank and Banca Monte dei Paschi di Siena, whilst simultaneously notifying MPS of this decision. According to a statement, the decision was taken “also with a view to ensuring maximum transparency towards the market and all shareholders”. Banco BPM, it adds, “remains fully focused on the Group’s strategic plan and on creating long-term value for all its shareholders”.
The decision, which had been under consideration over the past few days, was formalised following the statement issued by the French group, Banco Bpm’s largest shareholder with a 29.3 per cent stake. Earlier in the day, Crédit Agricole had made it clear that no deal could be put together ‘against’ or ‘without’ Paris. And that, in any case, ‘nothing concrete’ had ever been put on the table. Olivier Gavalda, CEO of Banque Verte, had been unequivocal during the half-yearly results call: “There are many scenarios on the table but, at present, we are not aware of any concrete plans” between MPS and Banco BPM, he told analysts. He added: “We have not been contacted by other parties regarding potential involvement in a project of this kind.” With these words, the French bank distanced itself from a possible deal with Siena, following an initial willingness to engage that had, however, remained implicit.
MPS responded immediately. In a statement issued this evening, it said it had “taken note of the comments made today by Crédit Agricole during the presentation of its half-yearly results and of the position subsequently expressed by the Board of Directors of Banco BPM”. Hence the decision to “remain focused on implementing its growth plan and on the integration with Mediobanca”. At this stage, MPS “will continue to evaluate every strategic option in the interests of all stakeholders”. However, it is clear that, with the doors now closed to the only alternative to the takeover bid launched by Intesa Sanpaolo for MPS, the deal in Siena now appears to be on a smooth path for Ca’ de Sass.
