Italy government to stay neutral over moves on MPS, sources say
Italy government to stay neutral over moves on MPS, sources say
By Giuseppe FonteMon, June 8, 2026 at 2:32 PM UTC
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Intesa Sanpaolo logo is seen in this illustration taken December 3, 2025. REUTERS/Dado Ruvic/Illustration
By Giuseppe Fonte
ROME, June 8 (Reuters) - The Italian government will take a neutral stance regarding merger and acquisition moves targeting bank Monte dei Paschi di Siena (MPS) , two sources familiar with the matter said on Monday.
Italy's top banking group Intesa Sanpaolo made a €30.6 billion ($35 billion) unsolicited cash-and-share bid on Monday to buy smaller rival Monte dei Paschi to create the euro zone's second-largest lender.
Amid mounting expectations of an Intesa bid, Banco BPM, Italy's fourth-largest bank, said on Sunday it wanted to open talks with MPS about a potential merger.
The Economy Ministry issued a brief statement on Monday saying it had been informed of the moves on MPS, which it said reflected the restored value of the bank, which the government had bailed in 2017 when it faced bankruptcy.
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Italy has so-called "golden powers" allowing the government to rein in bank merger deals, but one of the sources said Prime Minister Giorgia Meloni's government would not use the legislation to derail Intesa's takeover plans.
Intesa's CEO Carlo Messina told reporters on Monday that before making his move on MPS he had reached out to "various institutional players," though he said he had not talked to Meloni.
Matteo Salvini's co-ruling League Party has in the past expressed its support for a merger between Banco BPM and MPS to create the country's second-largest lender based in the north of the country, which is the League's heartland.
However the League's support has declined steadily in recent years, reducing its political weight and the prospects that it may try to impose its will over Meloni regarding the future of MPS.
(Reporting by Giuseppe Fonte, editing by Gavin Jones)
Source: “AOL Breaking”
