Latest news with #Mediobanca
Yahoo
a day ago
- Business
- Yahoo
Mediobanca pledges to return $5.74 billion to investors to counter MPS bid
MILAN (Reuters) -Italian merchant bank Mediobanca said on Friday it would return 4.9 billion euros ($5.74 billion) to shareholders, mostly in cash, over three years to 2028 as it seeks to fend off a hostile bid from smaller rival Banca Monte dei Paschi di Siena (MPS). Mediobanca reiterated in a statement that MPS' offer "lacks an industrial and financial rationale for Mediobanca shareholders and carries clear and significant execution risks." After gaining regulatory approval from the European Central Bank on Wednesday, MPS is ready to launch its all-share bid for Mediobanca next month. In an attempt to become too big for MPS to swallow, Mediobanca proposed in April to buy private bank Banca Generali. But it was forced to delay a shareholder vote on the deal to September 25 to avoid a possible defeat, as investors opposing the deal have recently increased their holdings in the merchant bank. In its updated three-year plan to 2028, published on Friday, Mediobanca confirmed it would focus on growing its wealth management business, with its corporate and investment banking segment providing support, and consumer finance operations serving as a driver of diversification against macroeconomic risks. "This virtuous path will be further strengthened by the offer for Banca Generali", it said. In its previous three-year plan to 2026, Mediobanca had said it would return more than 4 billion euros to shareholders over the period and forecast a net profit above 1.4 billion euros. Mediobanca now sees net profit growing 4.5% over the three financial years to 2028, reaching 1.9 billion euros, and expects revenue to rise at an annual average rate of 6% to over 4.4 billion euros. ($1 = 0.8537 euros) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
a day ago
- Business
- Wall Street Journal
Mediobanca Aims to Boost Profit, Payouts in Bid to Fend Off Monte Paschi
Mediobanca MB -1.24%decrease; red down pointing triangle said it is targeting higher profits and shareholder payouts over the next three years, as the Italian bank touted its standalone growth prospects in a bid to fend off an unsolicited takeover bid from Monte dei Paschi. The bank–formally known as Mediobanca Banca di Credito Finanziario–said Friday that its plan for the next three years calls for revenue of more than 4.4 billion euros, equivalent to $5.15 billion, net profit of 1.9 billion euros and a return on tangible equity–a key profitability metric for banks–of 20% in the year ending June 2028.
Bloomberg
a day ago
- Business
- Bloomberg
Mediobanca Vows to Boost Payouts to Fend Off Monte Paschi Bid
Mediobanca SpA plans to return €4.9 billion ($5.7 billion) to shareholders by 2028, as the Italian lender seeks to defend against a takeover bid from rival Banca Monte dei Paschi di Siena SpA. The bank sees revenue growing to above €4.4 billion by 2028, at an annual rate of 6%, it said in a strategy update disclosed Friday. Net profit is seen rising to almost €2 billion over the same period.
Reuters
a day ago
- Business
- Reuters
Italy's Mediobanca pledges 4.9 billion euro shareholder reward to counter MPS bid
MILAN, June 27 (Reuters) - Italy's Mediobanca ( opens new tab said on Friday it would offer shareholders rewards worth 4.9 billion euros ($5.73 billion), mostly in cash, over three years to 2028 as it seeks to fend off a hostile bid from smaller rival Banca Monte dei Paschi di Siena (MPS)( opens new tab. The merchant bank reiterated in a statement that MPS' offer "lacks an industrial and financial rationale for Mediobanca shareholders and carries clear and significant execution risks."
Yahoo
3 days ago
- Business
- Yahoo
Italy's Monte dei Paschi bank gets ECB nod for Mediobanca takeover
Monte dei Paschi di Siena (MPS) said on Wednesday that the European Central Bank had approved its proposed takeover of larger Italian lender Mediobanca. MPS, which still counts the state as its largest shareholder since a 2017 bailout, launched the bid in January — setting in motion one of the many consolidation battles currently playing out in Italy's banking sector. The lender is offering investors 23 new shares for every ten shares they hold in Mediobanca. This would value the latter at €14.2 billion, based on the closing stock price on Tuesday. Mediobanca's market capitalisation is currently about €16.7bn. The ECB has set conditions for the proposed takeover, although not in the way that certain analysts had expected it to. Some speculated that the central bank would require a minimum number of investors to accept the offer for the deal to proceed. In reality, there is no stipulated threshold for the deal to go ahead, although MPS must satisfy other conditions if it receives an acceptance rate lower than 50%. If this is the case, it must provide the ECB with a report confirming its 'de facto control' of Mediobanca, or otherwise provide a strategy outlining what it will do with the stake. Related Mediobanca rejects MPS takeover bid, calling it 'destructive of value' Banking mergers are hot right now, but cross-border deals still face hurdles If the deal secures a support level higher than 50%, the bank has six months to submit an integration plan. Mediobanca rejected MPS' bid in January, warning that it would be 'strongly destructive' and weaken its business model. In April, Mediobanca then played a defensive strategy, launching a separate takeover bid for Italian lender Banca Generali, giving shareholders an alternative option to the MPS deal. Another chapter in the saga involves the Del Vecchio and Caltagirone families, who are major shareholders in Mediobanca. The Italian government sold Mediobanca shares to the families in November, although there are reports that some investors were shut out of this process. The FT reported on Tuesday that the European Commission was investigating the sale. The assessment could potentially lead to the opening of a state aid investigation. Euronews has contacted the European Commission for comment. Other Italian banks currently caught up in the consolidation frenzy include Banco BPM and UniCredit. The latter attempted to acquire the former earlier this year, although regulatory hurdles are now reducing the possibility of a close. MPS' board will meet on 26 June to officially issue new shares and raise funding for the proposed takeover. Sign in to access your portfolio
