Italy neutral on Monte Paschi, may sell its stake through share placement

By Giuseppe Fonte

ROME, June 18 (Reuters) - The Italian government will take a neutral stance regarding merger and acquisition moves targeting bailed-out bank ​Monte dei Paschi di Siena (MPS), the economy minister told parliament on Thursday.

Addressing lawmakers in the Senate, Minister Giancarlo Giorgetti also said that a share placement through an accelerated bookbuilding procedure (ABB) would be "one of the best solutions" to cut Italy's residual 5% stake in MPS.

Italy's top banking group Intesa Sanpaolo this month made a €30.6 billion ($35.10 billion) unsolicited cash-and-share bid to buy MPS to create the euro zone's second-largest lender.

Banco BPM, Italy's fourth-largest bank, also said it wanted to open talks with MPS about a ⁠potential merger.

"The economy ministry will take a neutral stance regarding the ongoing consolidation process, without taking a position on the extraordinary transactions that have been announced or on any alternative transactions," Giorgetti said, confirming previous Reuters reports.

"The timing of the sale of Italy's residual stake in MPS must take this aspect into account," Giorgetti said, suggesting that the Treasury could sell its shareholding before Intesa's bid starts.

Matteo Salvini's co-ruling League Party, of which Giorgetti is a leading member, has in the past expressed ​support for a ​BPM-MPS tie-up, but Giorgetti's comments suggest the League has pulled back from this position.

Despite its neutrality, the government does not rule out setting conditions on the terms of any deal under golden power rules aimed at shielding strategic assets, the minister added.

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

"Italy's commitment is to divest its stake in MPS, but this step must be taken under the best market conditions to ensure that the investment made over time yields the maximum return," Giorgetti said.

In answer to lawmakers who raised concerns over the influence of France's Credit Agricole on Banco BPM through its stake of more than 20%, Giorgetti quipped: "when Italy plays against France, I root for Italy."

($1 = 0.8718 euros)

(Reporting by Giuseppe Fonte, editing by Alvise Armellini and Gavin Jones)