Rome freezes Monte dei Paschi stake amid takeover battle

The Treasury’s decision to freeze its holdings comes as the bank attempts to defend itself against a hostile takeover bid launched by Intesa Sanpaolo in June. To fend off the potential breakup of the company, Monte dei Paschi recently announced simultaneous acquisition bids for Banco BPM and wealth manager Banca Generali, moves valued at approximately €34 billion.

Local officials from Siena and Tuscany confirmed the Treasury's position following a meeting with Giorgetti in Rome. While the ministry previously intended to offload the remaining shares through an accelerated bookbuilding procedure, it has now opted to remain a shareholder until the current merger and acquisition phase concludes. Banco BPM, which counts Credit Agricole as a major investor, has labeled the unsolicited bid as something it will evaluate, though noted the offer lacks a premium. Shareholders are set to vote on the bank's defensive strategy on October 29, a date that will serve as a critical checkpoint for the government’s next move.