Italian bank MPS considers bid defence options after beating profit forecasts

MILAN, Aug 7 (Reuters) - Italian bank Monte dei Paschi di Siena (MPS) beat quarterly profit expectations on Friday and said it continues to study strategic options to fend off a takeover bid from rival Intesa Sanpaolo.

Bailed out by the state in 2017 and reprivatised in 2023/24, Monte dei Paschi dominated the consolidation wave that swept Italian banking last year by managing to buy larger peer Mediobanca.

In June it became a takeover target for Intesa, which is preparing to launch a €36 billion ($42 billion) cash-and-shares bid.

MPS, Italy's third-largest lender, said net profit for the three months to June 30 totalled €610 million, far above a €543 million consensus analyst estimate gathered by the bank.

MPS said it was working with advisers to examine alternatives to the Intesa bid in the best interest of its stakeholders, adding that it has "strategic flexibility" thanks to a core capital ratio of 16.3%, almost seven percentage points above regulatory requirements.

The bank's defensive strategy suffered a blow a week ago when Banco BPM said it was abandoning a potential tie-up project. BPM had rushed to invite MPS to merger talks just as Intesa prepared to unveil its bid.

MPS revenue was slightly ahead of forecasts at €2.07 billion, helped by robust lending growth and fees from corporate and investment banking, an area of business strengthened by the purchase of Mediobanca.

The integration of Mediobanca is expected to be completed in the fourth quarter, MPS said.     

($1 = 0.8678 euros)

(Reporting by Valentina ZaEditing by David Goodman)