Factbox-Italy banking shake-up: Intesa moves for MPS after Banco BPM approach

MILAN, June 8 (Reuters) - Italy's largest bank Intesa Sanpaolo on Monday announced a €30.6 billion ($35 billion) unsolicited cash-and-share purchase offer for rival lender Monte dei Paschi di Siena (MPS).

The move came after Banco BPM said on Sunday it would invite MPS to discuss a potential combination between the two lenders leading to a merger of equals.

SECOND BANKING GROUP IN EURO ZONE

If the Intesa bid is successful, the combined entity would result in the euro zone's second-biggest banking group by market value after Spain's Santander, with a capitalisation of €126 billion and a net income goal of €16 billion in 2029, Intesa said.

INTESA TEAMS UP WITH UNIPOL AND BPER IN MPS BREAKUP

As part of its offer, Intesa struck a deal with insurer Unipol, the main investor in BPER Banca, to sell a banking business comprising 635 of the MPS branches, about half of the bank's retail network, and the MPS brand itself, if its bid was successful. The agreement is aimed at addressing competition issues arising for Intesa from the MPS purchase and would help to maintain MPS, the world's oldest bank, as a force in retail banking.

Intesa and Unipol teamed up in a similar manner in 2020, at the time of Intesa's purchase of rival UBI Banca.

MPS IS FOCAL POINT IN ITALY'S BANKING CONSOLIDATION PROCESS

MPS, which Italy bailed out in 2017 and reprivatised in 2023-2024, emerged as a focal point for further banking consolidation in the country after last year it bought the Mediobanca merchant bank, becoming the largest investor in Generali, Italy's largest insurer and key financial institution. Those assets are among the main attractions for Intesa.

BANCO BPM HAS RIVAL PROPOSAL FOR MPS

On Sunday, amid mounting expectations of an Intesa move, Banco BPM, the country's fourth-largest bank, said its board had unanimously approved seeking to open talks with MPS over a potential €50 billion combination. 

BANCO BPM DEAL WOULD RESULT IN ITALY'S SECOND LARGEST BANK

A Banco BPM-MPS merger would create the second-biggest bank in Italy, overtaking UniCredit.

BANCO BPM HAS 3.7% STAKE IN MPS

Banco BPM - which became an investor in MPS in November 2024 - currently has a 3.7% stake in the Tuscan bank. Banco BPM's board includes representatives of France's Credit Agricole, the Italian bank's main investor. 

($1 = 0.8678 euros)

(Reporting by Giulio PiovaccariEditing by Keith Weir)