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Banca Monte dei Paschi di Siena shares jump after Italy cuts stake in lender

investing.com 14/11/2024 - 10:29 AM

Banca Monte dei Paschi di Siena Shares Surge

Shares in Banca Monte dei Paschi di Siena (BIT:BMPS) surged after Italy sold 15% of its stake in the bailed-out lender, raising 1.1 billion euros ($1.16 billion).

Italy's Treasury placed the shares at 5.792 euros each in an accelerated bookbuilding procedure, representing a 5% premium to Wednesday's closing price. The sale will bring Italy's interest in MPS down to 11.7% from 26.7%.

Banco BPM (BIT:BAMI), Italy's third-largest bank and a merger candidate with Monte dei Paschi, has also assumed a 5% stake in MPS. Banco BPM stated it has no plans to exceed 9.9% ownership in MPS, although this move may indicate a potential merger, particularly due to pressures from rising tech costs and falling interest rates.

In a statement, Banco BPM noted that acquiring a stake in MPS was part of the "broader context" of its recent decision to take full control of Anima Holding, a fund manager selling products through MPS branches.

Anima has taken a 3% stake in MPS, while shareholder Francesco Gaetano Caltagirone has purchased 3.5% in MPS, along with Delfin, the holding company of the Del Vecchio family, as reported by Reuters.

Banco BPM's Anima deal, valued at up to 1.6 billion euros, would allow its insurance business to take at least a 67% stake in Anima.

By executing this transaction through the insurance unit, Banco BPM, which currently holds 22% in Anima, can increase its stake with minimal capital. Earlier this year, BNP Paribas (OTC:BNPQY) also conducted a similar acquisition of AXA's asset manager through its BNP Paribas Cardif unit.

(Reuters contributed reporting.)




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