Italy's MPS says question marks remain over higher Intesa bid

MILAN, Oct 12 (Reuters) - Italian bank Monte dei Paschi di Siena (MPS) on Monday said suitor Intesa Sanpaolo's sweetened takeover offer leaves MPS investors exposed to several uncertainties, while forcing them to ditch a possible alternative plan.

• Intesa on October 3 pledged to pay MPS shareholders a further €800 million ($892 million) in cash provided they reject a counter-plan MPS has proposed to fight Intesa's €34 billion cash-and-share takeover bid.

• MPS CEO Luigi Lovaglio had been asking investors to back the counter plan at an October 29 vote, even if they intended to later take up Intesa's offer.

• Following Intesa's ultimatum, leading MPS investors holding in aggregate a third of the bank's capital have said they will reject the defence plan and accept Intesa's bid.

• Their stance makes it impossible for Lovaglio to reach the two-thirds majority he needs to prevail at the October 29 vote.

• The board of MPS met on Monday to discuss the latest developments.

• MPS said Intesa was asking MPS shareholders to give up an alternative plan though there was no certainty that the bid would unfold as expected and produce the targeted returns.

• "MPS board and its management will continue to work in the interest of shareholders, evaluating and pursuing any initiatives to protect investors' holdings and maximise their value," it said.

($1 = 0.8964 euros)

(Reporting by Valentina Za)