MPS third-quarter profit tops forecasts as Intesa bid nears

MPS’s net profit for July-September exceeded the company-provided forecast, while revenue also beat expectations, reaching €2 billion.

Intesa launched a €34 billion cash-and-share bid for the Tuscan bank in June. To address competition concerns, the larger rival will need to break up MPS’s branch network. The tender phase is expected to begin in the week of November 23.

Last week, MPS shareholders rejected a defence plan put forward by CEO Luigi Lovaglio after Intesa increased its offer and threatened to withdraw. The revised bid won the backing of MPS’s biggest investor, Italy’s Del Vecchio family.