Italy to handle Monte Paschi stake without interfering with M&A moves

By Giuseppe Fonte

ROME, Aug 5 (Reuters) - Italy will handle its residual 4.9% stake in Monte dei Paschi di Siena (MPS) in a way that does not interfere with M&A moves affecting the bailed-out lender, Economy Minister Giancarlo Giorgetti told reporters on Wednesday.

Rome will keep its shareholding at least until the end of Intesa Sanpaolo's unsolicited €30.6 billion ($35.34 billion) cash-and-share bid for MPS, a source familiar with Giorgetti's thinking on the matter said.

The economy minister also said the ministry had readied an accelerated bookbuilding procedure (ABB) to place its MPS stake with investors before Intesa announced its plans in June, confirming a previous Reuters report.

"Now we'll act in a way that doesn't cause problems for anyone. We don't want to interfere," Giorgetti said, when asked whether a share placement could come before Intesa's takeover offer starts.

The minister said in June that an ABB would be "one of the best solutions" to cut Italy's stake in ​MPS, adding that the timing of any sale should be decided in line with Rome's stated neutral stance on Italy's banking consolidation process.

Speaking at the annual meeting of Italy's banking lobby ​last month, Giorgetti said it would be the last such gathering that the government attended as a bank shareholder.

His remarks fuelled expectations of an imminent disposal. At current market prices, ‌the state's ⁠stake in MPS is worth €1.7 billion.

The market would see as negative for Intesa a placement of the Treasury shares before the start of the offer, analysts have told Reuters, because it could give an edge to any buyer interested in fighting the takeover.

Giorgetti's latest comments, highlighting the need not to create obstacles, appear consistent with that view.

Italian mid-sized lender Banco BPM had also expressed interest for a merger deal with MPS, but abandoned the plan following criticism from its main shareholder, France's Credit Agricole.

The Treasury owns 4.86% of MPS after rescuing the bank in 2017 through a costly bailout agreed with European Union authorities, and later ​returning it almost entirely into private hands through three stake placements starting in ​late 2023.

($1 = 0.8658 euros)

(Additional reporting by Valentina Za in Milan; Editing by Gavin Jones)