Business
Intesa wins Delfin backing for Paschi bid with 17.6% stake
Livemint··5 Oct
Intesa Sanpaolo said Delfin Sarl backs its sweetened tender for Banca Monte dei Paschi, Bloomberg reported via Livemint. Delfin's board will support the offer with its 17.6 percent Paschi stake, Intesa said Sunday. Intesa raised the cash component by 25 cents per share if shareholders reject CEO Luigi Lovaglio's plan to buy Banco BPM and Banca Generali.
Prism
What It Means For You
- Paschi shareholders must choose between Intesa's tender and Lovaglio's rival strategy on 29 October.
- Retail investors holding Paschi stock face dilution or cash depending on which plan wins.
- A two-thirds majority is required to keep Lovaglio's alternative bids alive, the report said.
What's Happening
- Lovaglio needs a broad investor coalition after Delfin sided with Intesa.
- The Italian government still owns about 5 percent of Paschi and signalled it will not intervene.
- Francesco Gaetano Caltagirone, with about 10 percent, opposes merging Paschi with Banco BPM, media reported.
October 29 Paschi shareholder vote
- Delfin agreed to vote consistently with Intesa's offer conditions at the meeting.
- Intesa announced the sweetened cash terms over the weekend, Bloomberg said.
- Monte Paschi representatives declined to comment on Delfin's decision.
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