GlobalData
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Italian investment bank Mediobanca has announced a three-year strategy to distribute $5.74bn to its shareholders, as it seeks to counter a hostile takeover bid from smaller competitor Banca Monte dei Paschi di Siena (MPS), reported Reuters.
In January this year, MPS launched a €13.3bn ($14bn) all-share buyout offer for merchant bank Mediobanca.
Mediobanca rejected the takeover proposal from MPS, stating it is “destructive” for the business and lacks “industrial and financial rationale” for Mediobanca shareholders.
It also said that the offer could lead to a “significant loss” of customers, mainly in wealth management (WM) and investment banking.
MPS, having secured approval from the European Central Bank, is preparing to launch an all-share bid for Mediobanca next month.
Meanwhile, Mediobanca proposed acquiring private bank Banca Generali in April to bolster its scale and deter MPS’ advances.
However, it was compelled to postpone a shareholder vote on the acquisition to 25 September 2025 due to growing opposition from investors who increased their stakes in Mediobanca to resist the deal.
The bank’s updated three-year plan to 2028 emphasises expanding its wealth management division, supported by its corporate and investment banking operations, with consumer finance acting as a buffer against macroeconomic uncertainties.
Mediobanca projects a 45% increase in net profit over the three years to 2028, reaching €1.9bn ($2.2bn), with revenues expected to grow at an average annual rate of 6%, surpassing €4.4bn ($5.5bn).
In its prior plan to 2026, the bank had targeted returning over €4bn ($4.6bn) to shareholders and anticipated a net profit exceeding €1.4bn ($1.64bn). Additionally, Mediobanca plans to issue up to €750m ($878.6m) in Additional Tier 1 bonds under the new strategy, according to Nagel.
"Mediobanca plans $5.7bn shareholder payout to thwart MPS takeover" was originally created and published by Private Banker International, a GlobalData owned brand.
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