Mediobanca pledges EUR 4.9 billion shareholder reward to counter MPS bid

Mediobanca pledges EUR 4.9 billion shareholder reward to counter MPS bid

Milan, Italy - Italy's Mediobanca has announced a significant shareholder reward worth €4.9 billion over three years to 2028, as part of its strategy to fend off a hostile takeover bid from Banca Monte dei Paschi di Siena (MPS). The merchant bank has stated that MPS' offer lacks an industrial and financial rationale for Mediobanca shareholders and carries clear and significant execution risks [1].

The shareholder reward, which includes €4.5 billion in cash, is part of Mediobanca's plan to strengthen its position and maintain its independence. The bank has also forecasted revenues above €4.4 billion and a net profit of €1.9 billion by 2028, with a return on equity (ROE) of 20% and an ordinary shareholder return of 17% [3].

The move comes as MPS has received authorization from the European Central Bank (ECB) to acquire a controlling stake in Mediobanca. The ECB has required MPS to submit an integration plan within six months of the acquisition, which includes details on capital impacts, funding strategies, and digitalization/IT security measures [2].

Mediobanca's response to the MPS bid reflects a strategic effort to bolster its financial health and maintain its competitive position in the Italian banking sector. The bank's commitment to shareholder rewards and robust financial projections underscores its confidence in its future prospects.

References:
[1] Reuters. (2025). Italy's Mediobanca pledges €4.9 billion shareholder reward to counter MPS bid. Retrieved from https://www.marketscreener.com/quote/stock/MEDIOBANCA-S-P-A-69007/news/Italy-s-Mediobanca-pledges-4-9-billion-euro-shareholder-reward-to-counter-MPS-bid-50349148/
[2] Agenzia Nova. (2025). MPS ECB authorizes Lops on all ordinary shares of Mediobanca. Retrieved from https://www.agenzianova.com/en/news/mps-ecb-authorizes-lops-on-all-ordinary-shares-of-mediobanca/
[3] TradingView. (2025). Mediobanca sees in 2028 net profit of €1.9 billion. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3ST0RH:0-mediobanca-sees-in-2028-net-profit-of-eur-1-9-bln/