Monte dei Paschi makes a move against the takeover bid from Intesa

The Bank of Italy warns that Italy's planned tax hikes on the financial sector, totaling €5.9 billion ($6.5 billion) for 2027, increase uncertainty and may impact 2026 earnings. The government also plans to spread €20 billion in tax breaks over 10 years, which could affect liquidity and debt management. Intesa Sanpaolo's CEO Carlo Messina criticized the measure, comparing it to a 'South American approach' to debt management.

Intesa Sanpaolo raised its 2026 profit outlook after reporting better-than-expected quarterly earnings. CEO Carlo Messina expressed confidence in the upcoming antitrust ruling for its €34 billion bid for Monte dei Paschi di Siena (MPS). Intesa expects a full-year net profit well above €10 billion, despite tax hikes. Net profit for Q3 was €2.65 billion, exceeding analyst forecasts.

Monte dei Paschi di Siena (MPS) is set to lose independence after 550 years, as shareholders rejected CEO Luigi Lovaglio's defense plan against Intesa Sanpaolo's €33 billion takeover offer. Intesa's plan includes selling half of MPS's branches to insurer Unipol, which will merge MPS with BPER under the 'Monte dei Paschi' brand. MPS has a long history dating back to 1472 and has faced financial challenges in recent years, including state bailouts and failed acquisitions.

Italy's FTSE MIB index fell 0.61% to 49,753.84 on 14 October 2026, driven by declines in Prysmian, banks, and higher bond yields. Avio surged 5.34% on a Lockheed Martin deal. The index is down 3.5% in the past month but up 11% year-to-date. Investors watch banking consolidation and rate outlook.

Monte dei Paschi (MPS) CEO Luigi Lovaglio is considering responses to Intesa Sanpaolo's €31.4bn takeover offer, including a special dividend or a counteroffer. Options also include postponing the shareholder meeting or distributing MPS's stake in Generali. Unipol's CEO proposed acquiring MPS's legal entity and branches to create a €50bn conglomerate.

The European Investment Bank (EIB) and Intesa Sanpaolo have agreed to provide €300 million for affordable housing and student residences in Italy, potentially triggering €600 million in total investments. The funds will support projects by public and private operators, aiming to address housing demand. This aligns with the EIB's social infrastructure priorities and Intesa Sanpaolo's commitment to social lending.