Monte dei Paschi explores Banco BPM takeover after merger talks collapse

The merger that was supposed to create Italy’s second-largest lender is dead. Now the real chess match begins. Banco BPM formally pulled the plug on merger discussions with Banca Monte dei Paschi di Siena (MPS) on July 31, citing a lack of definitive progress and resistance from its largest investor, Crédit Agricole. What started as a friendly “merger of equals” pitch in early June has devolved into something far messier, with MPS now exploring a potential takeover of the very bank that just walked away from the table. How the deal fell apart Rewind to June 7, when Banco BPM floated the merger-of-equals proposal. The combined entity would have boasted a market capitalization of roughly €50 billion, making it a genuine heavyweight in European banking. MPS brought a valuation of around €27.3 billion to the conversation. Banco BPM came in at approximately €20.3 billion. The very next day, June 8, Intesa Sanpaolo lobbed an unsolicited €30.6 billion ($35.3 billion) takeover bid for MPS. Crédit Agricole, Banco BPM’s biggest shareholder, proved to be another obstacle. The French banking giant apparently had little appetite for a merger that would dilute its influence, and its resistance e...