Banca Generali has confirmed it is evaluating an unsolicited takeover offer from Monte dei Paschi di Siena, one half of a twin bid the older bank launched as it tries to fend off a hostile approach of its own from Intesa Sanpaolo. Monte dei Paschi's board approved the all share offer alongside a separate bid for Banco BPM, together valued at about 34 billion euros.
The offer for Banca Generali values the company at roughly 8.7 billion euros. Under the terms, shareholders would receive 6.958 new Monte dei Paschi shares for every Banca Generali share they hold, implying a price of about 74.284 euros a share and a premium of around 10 percent over official prices from August 19, before the offer became public.
Banca Generali is the private banking and wealth management arm of the insurer Assicurazioni Generali, which holds a majority stake in the company. That ownership structure adds a layer of complexity to any deal, since Generali's own board and shareholders have a direct stake in how their subsidiary responds to an approach from Monte dei Paschi.
Monte dei Paschi chief executive Luigi Lovaglio has said the Banca Generali and Banco BPM offers are not conditionally linked, meaning either can proceed independently of the other. The dual approach is designed to make Monte dei Paschi larger and harder for Intesa Sanpaolo to absorb, turning what began as a defensive fight into offers touching three of Italy's most prominent financial institutions at once.
Banca Generali's statement that it is evaluating the offer stops short of endorsing or rejecting it, leaving the company's board to weigh the proposed exchange ratio and premium against its own strategy as a stand alone wealth manager within the Generali group. How that evaluation concludes will shape whether Monte dei Paschi's broader defense against Intesa ultimately succeeds.