MILAN – Mediobanca struck back on Monday in the takeover war gripping Italian finance with a 6.3 billion euro ($7.15 billion) offer for wealth manager Banca Generali to be financed by handing over its stake in insurer Generali.
The stake that makes Mediobanca the biggest Generali investor has long pitted the Milanese bank against two other major shareholders: construction magnate Francesco Gaetano Caltagirone and Delfin, the investment vehicle of Italy’s Del Vecchio family.
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They own 17 percent of Generali, and 27 percent of Mediobanca.
“We’ve been accused, rightly or wrongly, of relying too much on Generali,” Mediobanca CEO Alberto Nagel told reporters.
“This is a financially sound move that removes that issue.”
With a market value of 6.5 billion euros the Generali stake allows Mediobanca to pay in full for a deal it has been studying for at least five years, Nagel said.
Banca Generali is 50.2 percent owned by Generali and Mediobanca last week scored a major victory against Caltagirone and Delfin by naming 10 directors on the insurer’s 13-strong board, including CEO Philippe Donnet.
Nagel said he hoped to now start discussions with Generali and Banca Generali over the deal.
If not enough Banca Generali investors swap their shares for Generali shares under the bid, Nagel said Mediobanca would sell Generali shares on the market and use the money to buy shares in Banca Generali in order to get to 66.7 percent.
Alternative projects
In the latest twist of the years-long feud between Nagel and Caltagirone-Delfin, the two have acquired almost 20 percent of state-backed Monte dei Paschi di Siena (MPS) (BMPS.MI), opens new tab and are supporting its hostile bid for Mediobanca.
Nagel said Mediobanca shareholders would now have the option of choosing between two alternative projects.
“If our shareholders back this deal they will be choosing one project and I don’t imagine they would then swap it for another.”
Mediobanca shareholders will vote on June 16 on the Banca Generali offer.
The deal would make wealth management Mediobanca’s core business, while the MPS bid would plug Mediobanca’s operations, which comprise consumer finance and investment banking, into the Tuscan bank’s branch franchise.
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The consolidation frenzy shaking Italian banks comes as they brace for falling revenues after higher interest rates fuelled record profits in recent years. Normally rare in banking, hostile moves have become the norm in Italy.
“You know we have been chasing this opportunity for many years,” Nagel said. “We have found that at this moment a lot of stars aligned.”
Caltagirone last week gained only three Generali board seats despite receiving eleventh hour support from UniCredit , which has bought 6.7 percent of Generali.
UniCredit’s strategy over Generali remains unclear, but bankers say CEO Andrea Orcel could eye wealth management deals with the insurer.
