Siena, Italy – Monte Dei Paschi di Siena remains firm in their plans to acquire Medical For 13 billion euros ($ 14.3 billion) despite the turbulence of the continuous market, telling CNBC that it will complete the agreement in July.
The oldest bank in the world is still in operation, surprised investors in January by doing A section of section for medicancaA prestigious institution focused on wealth management and investment banking. Medobanca has rejected the proposal, denouncing -as a “Destructive” Movement that does not have a financial reason.
Monte Dei Paschi has faced several challenges over the years, especially when atat For the Italian government in 2017 after it did not manage to raise much cash from private investors. The Italian government has sold its majority participation in Monte Dei Paschi and currently represents less than 12% of property.
The CEO of the bank, Luigi Lovaglio, told CNBC on Monday that Monte Dei Paschi « has returned » and « in control of our destination ».
When asked if the turbulence of the ongoing market could be a problem for their expansion plans, Lovaglio said: « The situation (market) will not affect our agreement. «
« On the contrary, (the situation of the market) confirms that the size is important, (is) confirming that it must be diversified in revenue, » he said, adding that if they were already a combined entity, they would « be stronger » and « would have the ability to react much faster. »
The recent market volatility has led some companies to launch some offers. British private capital company 3i Group Plc has report postponed a sale of the Pet Food MPM manufacturer while the Fintech Klarna company has put its IPO plans on hold.
Analysts have been divided into the advantages of the agreement between Monte Dei Paschi and Medobanca. Deutsche Bank, for example, said that in mid -March, the market ignored some potential opportunities for Monte Dei Paschi, including a larger distribution policy.
Other analysts warned about the synergies limited in the combination of two different banks. Barclays, for example, said on Monday that he was reducing his price goal for Monte Dei Paschi, having a more skeptical view on the possible gains of an agreement with Medobanca. « If Monte Dei Paschi decided to spend more to convince most of the institutional shareholders of Mediobca, the excess capital could reduce, » said Barclays.
Speaking to CNBC, Lovaglio was forceful for Medobanca presents a « fair price » and did not comment on whether the company would sweeten the agreement to make it more attractive to medical shareholders.
« Hopefully in July we can complete the agreement, » he added.
In the midst of a deployment of the global capital markets Monday, the shares of Monte Dei Paschi and Medobanca closed about 5% lower. Since Monte Dei Paschi announced its intention to buy Medobanca on January 24, the latter’s shares have lost about 14% of its value and the first of 8.5%.
Larger ambitions
Monte Dei Paschi’s offer for Medobanca arrived at a time of wider consolidation efforts in Italian banking. Unicredit announced last year a bestow To buy rival BPM Bank For about 10 billion euros.
Lovaglio said that these offers represent the first wave of domestic consolidation for Italian banks.
« I think this is the first phase (consolidation) and we will probably have a second phase of two years from now. That is why, combining Monte (Dei) Paschi with Medobanca, we will be in a position to be the protagonists again, » said Lovaglio.
Leave a Reply