Italy's MPS faces setbacks in Banco BPM, Banca Generali takeover bids

MILAN, Oct 8 (Reuters) - Italy's Banca Monte dei Paschi was dealt fresh blows on Thursday to its takeover bids for Banco BPM and Banca Generali, after key shareholder Caltagirone opposed both deals and Credit Agricole said it would not tender its Banco shares.

The announcements are likely to further increase the chances of Italy's largest lender Intesa Sanpaolo succeeding in its own takeover of MPS, which the Tuscan lender is trying to resist with its offers for Banca Generali and Banco BPM.

The holding company of Italian entrepreneur Francesco Gaetano Caltagirone FGC, which owns 10.26% of MPS, said it would vote against both acquisitions at an October 29 shareholder meeting.

It would also oppose a proposed merger between MPS and Mediobanca, another pillar of MPS CEO Luigi Lovaglio's defence strategy.

Credit Agricole CEO Olivier Gavalda said separately, at an event in Frankfurt, that the French bank would not tender its 29.3% stake in Banco BPM into MPS' takeover offer, dismissing it as "not attractive enough".

INTESA'S BID GATHERS MOMENTUM

Intesa has said it will withdraw its offer if MPS investors endorse Lovaglio's defence plan. As a result, voting against the proposed acquisitions and merger has become the clearest way for shareholders to support Intesa.

While Caltagirone stopped short of formally committing his stake to Intesa's offer, his decision to oppose all elements of the MPS plan gives Intesa's bid momentum and increases pressure on Lovaglio ahead of the decisive October 29 vote.

Caltagirone's stance follows decisions by two other major MPS investors - Delfin, the Del Vecchio family's holding company which holds a 17.6% stake, and the Benetton family vehicle Edizione with a 1.45% stake - to back Intesa's improved €35 billion ($39.12 billion) offer for MPS.

($1 = 0.8947 euros)

(Reporting by Giulia Segreti in Rome, additional reporting by Tom Sims in Frankfurt, writing by Gianluca Semeraro, editing by Alvise Armellini and Gavin Jones)