Italy's MPS bank takes over rival Mediobanca: local media

Milan, Italy: Italy s Monte dei Paschi di Siena (MPS) bank has acquired a controlling stake in rival Mediobanca after launching a hostile public takeo...

Milan, Italy: Italy's Monte dei Paschi di Siena (MPS) bank has acquired a controlling stake in rival Mediobanca after launching a hostile public takeover offer, Italian news agencies Ansa and Radiocor reported.

MPS, the world's oldest bank, has acquired a 62.3 percent of the share capital of its larger rival in the first round of the share offer, according to stock exchange data, as it seeks to create the country's third largest banking group.

MPS surpassed last week the minimum threshold of a 35 percent stake it had set to follow through on the offer, which Mediobanca's board of directors has rejected.

Last week Mediobanca said the offer "lacks industrial rationale" and the valuation is "entirely inadequate".

MPS was bailed out by the Italian government in 2017 and has long been considered the weak link in the Italian banking sector, although it has begun a clear recovery.