Lovaglio (Mps): ‘M&A? We’ll consider all the options’

“We welcome the interest in Montepaschi: the revival we have seen in recent years has enabled us to become a leading, highly attractive player, and when a bank is recognised, even at an institutional level, as a gem, it is clear that the standard of any transaction naturally rises.”

MPS CEO Luigi Lovaglio, speaking at the Mediobanca CEO Conference, addressed the market for the first time following the launch of Intesa Sanpaolo’s 30.6 billion OPAS, which came whilst Banco BPM’s proposal for an amicable merger also remains on the table.

Lovaglio emphasised that it is now the management’s duty to examine all available options. “There is a process, there are rules, and I intend to adhere to them: together with the board of directors, we are fully committed to analysing all options in the interests of all stakeholders and shareholders, and this is a duty that I wish to confirm to the market.”

The message to the market is clear: MPS is keeping all options open, but stands by the progress made in recent years and aims to fully realise the bank’s value. “It is important for us to continue working in this direction,” adds Lovaglio, “because I truly believe that it is our duty to make Monte Paschi’s value even more recognisable than it is today. And I believe this will benefit all the bank’s stakeholders and shareholders.”

Meanwhile, the manager has confirmed that the integration between MPS and Mediobanca is ‘on track’. This was also confirmed by yesterday’s board meeting, at which the bank began implementing the group’s reorganisation plan, which was approved on 17 February. The boards of directors of MPS, Mediobanca Premier and Widiba have in fact given their unanimous approval to the plans involving the transfer of the corporate & investment banking, high-end private banking, Mediobanca’s overseas branches and the stake in Generali into a new Mediobanca, wholly owned by MPS. At the same time, the financial adviser networks of Mediobanca Premier and Widiba are set to be integrated. “The integration is proceeding according to schedule and within the defined scope,” says the manager, “and this further reinforces the business rationale underpinning the project.” For Lovaglio, “the more I speak with investors, the more I believe that the combination of Mediobanca and Monte dei Paschi represents one of the best ways to address current market developments and to offer clients unique and comprehensive services”. According to the banker, MPS faces “a great opportunity because we are among the most dynamic operators. We must make our excellent franchises even more visible and recognisable, combining a historic, iconic brand such as Monte dei Paschi with another iconic brand such as Mediobanca”. This is “a unique opportunity for the market, which will be able to benefit from distinctive services. At the same time, it is also an extraordinary opportunity for our people, who will be able to take part in one of the most attractive projects of the last decade”.