Lovaglio: ‘Monte Paschi is worth more than 30 billion; we will consider all options’

“We have a duty to assess every proposal and to see if there are any better proposals in the interests of all shareholders.” So said Luigi Lovaglio, chief executive of Monte dei Paschi, in response to a question at a public meeting as to whether he was considering any counter-proposal to the public takeover bid launched by Intesa Sanpaolo. He pointed out that Monte dei Paschi is currently valued at 11 euros on the stock market, whilst the capital increase in 2022 was carried out at 2 euros.

During the meeting organised by the Municipality of San Casciano Bagni, Lovaglio did not answer the question as to whether the board of directors, due to meet on 16 July, would consider Intesa’s public takeover bid and the merger proposal put forward by Banco BPM. Lovaglio added that he is not asking for favours from shareholders, who “are won over by transactions that create value for all stakeholders; besides, my shareholders also know that I am a person of integrity”.

He does, however, make one point: “Monte dei Paschi’s potential is much greater than what is reflected on the stock market.” Lovaglio therefore does not wish to comment directly on the public takeover bid launched by Intesa Sanpaolo, on the value offered, and certainly not on the possibility that the bank led by Carlo Messina might raise its bid. “I’m not even interested in answering: what is the bank’s value? If I asked the staff, they’d say it’s limitless; I say that our value is enormous and has not yet been fully realised.” Elsewhere, in an interview with journalist Pino Di Blasio, Lovaglio observes that in the sector “you have to accept challenges and not say, ‘Because I’m afraid of the competitor, I’ll pounce on them and make them disappear’; that sort of thing isn’t right.”

“In all cases,” added Lovaglio, “Monte dei Paschi is a highly valuable asset for the country, with a potential worth more than 30 billion; its strength lies in its network of people.”