Luigi Lovaglio prepares defense against Intesa’s €36 billion takeover

Intesa Sanpaolo’s €36 billion cash-and-share offer, launched in June, seeks to dismantle Monte dei Paschi (MPS) by retaining half of its branch network while selling the remainder to clear antitrust hurdles. Lovaglio has openly criticized this blueprint as value-destructive, a sentiment echoed by Prime Minister Giorgia Meloni, who has voiced concerns over the potential dismemberment of the institution. With previous efforts to merge with Banco BPM collapsing after opposition from Credit Agricole, the pressure on the board to devise a viable alternative has intensified.

Market observers suggest the defense could hinge on leveraging the bank's 13% stake in the insurer Generali, valued at approximately €8.5 billion. While analysts speculate this asset could be sold or traded to boost shareholder returns and outmaneuver Intesa’s €3 billion cash incentive, Lovaglio has historically resisted parting with the stake. The board’s decision will be closely watched by major shareholders, including the Del Vecchio family’s investment vehicle, Delfin, and construction tycoon Francesco Gaetano Caltagirone, both of whom hold significant interests in Generali. This high-stakes standoff arrives amid a broader wave of banking consolidation, occurring as UniCredit navigates its own expansion into Germany.