Monte dei Paschi Weighs Options to Fend Off Intesa Bid — Update

By Michael Hennessey

Banca Monte dei Paschi di Siena said it is weighing options to preserve its integrity, as its chief executive questioned the impact of Intesa Sanpaolo's $35 billion takeover bid on the world's oldest bank and Italy's economy.

Monte dei Paschi's CEO Luigi Lovaglio said Friday that the Italian lender has a capital buffer that gives it room to support growth, reward shareholders and evaluate strategic opportunities.

Lovaglio said the bank saw its 13.3% stake in insurer Assicurazioni Generali as "nice-to-have" but was aware that it had attracted interest from a number of market participants. Monte dei Paschi would also be open to assessing strategic opportunities with rival Banco BPM should they arise, he added.

Monte dei Paschi in June became the target of a cash-and-stock bid from larger rival Intesa. BPM initially made a competing merger proposal, but last week abandoned talks after its biggest shareholder, Credit Agricole, raised doubts about the merits of a tie-up.

The moves placed Monte dei Paschi--widely considered the world's oldest bank still in operation--at the center of efforts to consolidate Italy's finance industry. The bank in recent years recovered from a government bailout, and sought to expand through its purchase of Mediobanca last year.

Speaking to analysts, Lovaglio reiterated concerns previously voiced by Monte dei Paschi's board about the price offered by Intesa and other risks linked to the transaction.

Lovaglio said he would support bank acquisitions that strengthen players in Italian banking, but that the sector's diversity had to be preserved.

"A national champion should strengthen the country's competitive fabric, not reduce it," Lovaglio said. "Otherwise, the crown may become larger, but the kingdom becomes smaller."

Intesa declined to comment on Lovaglio's stance and pointed to recent remarks by its CEO Carlo Messina, who said the offer sought to create a stronger and more profitable group.

Lovaglio said Monte dei Paschi's review of strategic options aimed to maximize long-term value for all stakeholders and avoid a breakup of its branch network.

Under Intesa's bid, the Monte dei Paschi brand and around 635 branches would be sold to Unipol Assicurazioni, while Intesa would keep around 625 branches and the Mediobanca business.

Monte dei Paschi's integration of Mediobanca is progressing ahead of schedule and the bank could exceed its synergies target for this year while continuing to gain market share, Lovaglio said.

The bank raised its pretax profit guidance for 2026 to 3.6 billion euros ($4.15 billion), up from the previous forecast of above 3.5 billion euros.

Monte dei Paschi said net profit for the second quarter jumped to 610.2 million euros from 479.4 million euros in the year-earlier period. The lender restated its year-earlier figures to include the results from Mediobanca in the period before the acquisition.

Second-quarter revenue rose to 2.06 billion euros from 1.96 billion euros. Net interest income was broadly flat at 1.06 billion euros while net fee and commission income increased 9.0% to 670.1 million euros.

Net fee and commission income was boosted by corporate and investment banking and asset management, it said.

The bank said its CET1 ratio--a measure of capital strength--increased to 16.3% as of June 30, up from 15.9% three months earlier.

Write to Michael Hennessey at michael.hennessey@wsj.com

(END) Dow Jones Newswires

August 07, 2026 07:10 ET (11:10 GMT)