Monte dei Paschi says 35% ownership of Mediobanca would be enough
In the investor document detailing the terms of the hostile bid that will kick off on July 14 and run until September 8, Monte dei Paschi said it did not have to necessarily secure two thirds of its target's share capital.
That is the threshold the offer is currently subject to.
However, Monte dei Paschi could waive that condition in order to ensure the offer succeeds even with a lower take-up.
"The purchase of a shareholding between 35% and 50% of Mediobanca's voting share capital would enable Monte dei Paschi to obtain de facto control, by exercising a dominant influence at the ordinary shareholders' meeting of Mediobanca and impacting the general course of management," it said.
Monte dei Paschi was rescued by the state in 2017 after a decade at the centre of Italy's slow-moving banking crisis. It has since been restructured and has returned to profit under Chief Executive Luigi Lovaglio.
Since failing to clinch a sale of the Siena-based bank to UniCredit (CRDI.MI), opens new tab in 2021, Rome has strived to use the privatisation of Monte dei Paschi as a way to create a third large banking player in the country alongside market leaders Intesa Sanpaolo (ISP.MI), opens new tab and UniCredit.
UniCredit's bid for smaller peer Banco BPM (BAMI.MI), opens new tab in November deprived Monte dei Paschi of the merger partner the Italian government had wished for, triggering the surprise bid for larger rival Mediobanca in January.
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