Intesa Sanpaolo and Banco BPM are competing for control of Banca Monte dei Paschi di Siena, continuing a wave of dealmaking activity in Italy's banking industry. The competition intensified after Banco BPM proposed a €50 billion merger of equals that would create Italy's second-largest banking group.
Within 24 hours of the BPM bid, Intesa Sanpaolo launched a full public offer for Monte dei Paschi di Siena. Intesa announced an unsolicited bid of $35.3 billion in an effort to usurp its rival.
If approved, the Intesa deal would create Europe's second-largest banking group by market capitalization. This development injects fresh momentum into a two-year consolidation push and could kick-off a second wave of dealmaking in Italian banking after a burst of M&A activity last year.