Italian Plot Twist May Finally Insulate Finance From Politics
Mediobanca has spotted an escape route from an unwanted bid, but it leaves Monte Paschi with a headache.
Italian banking consolidation may end up defending the finance industry from political interference.
Photographer: Francesca Volpi/BloombergItaly’s banking melodrama just took another wild plot twist. Mediobanca SpA has spotted a neat escape route from an unwanted takeover bid by Banca Monte dei Paschi di Siena SpA — and from the billionaire shareholders who’ve spent years trying to use it as a backdoor route to influencing insurer Assicurazioni Generali SpA.
The solution: Mediobanca on Monday launched an offer for wealth manager Banca Generali SpA worth €6.3 billion ($7.2 billion), to be paid for with its 13% stake in Generali. That looks like a good deal for fans of clear, focused businesses, unencumbered by a big financial stake in another group. However, it potentially creates other headaches, not least of which is leaving Monte Paschi once again without a merger partner – frustrating the government’s efforts to offload its stake in Italian banking’s thrice-rescued problem child.