Mediobanca: ISS urges shareholders to approve merger with MPS

(Il Sole 24 Ore Radiocor) - The proxy adviser ISS is urging Mediobanca shareholders to approve the merger with MPS ahead of the general meeting on 29 October. The deal, in fact, “appears to be underpinned by sound strategic logic and, on the whole, deserves to be supported”, even though the valuation of Piazzetta Cuccia’s shares “does not appear particularly attractive” and given the uncertainties surrounding Intesa Sanpaolo’s OPAS. According to ISS, the merger would be “a step towards the full realisation of synergies” and “would eliminate the implicit conflict between the controlling shareholder and minority shareholders”, even though Intesa has urged shareholders not to approve the deal, preferring to proceed once it has gained control of MPS. ‘Nevertheless,’ concludes ISS, ‘the merger does not, in itself, appear to jeopardise Intesa’s offer’, given that Ca’ de Sass has not made its rejection a condition for the public takeover bid to take effect.

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