Bidding War for Oldest Bank in World: Italy’s Banca Monte dei Paschi di Siena

Italy’s largest bank, Intesa Sanpaolo, has launched an unsolicited 31 billion euro bid for Banca Monte dei Paschi di Siena (MPS), one of Italy’s oldest and largest banking institutions. The offer came just a day after Banco BPM proposed what it described as a “merger of equals.”

Intesa stated its proposal would create the second-largest banking group in the European Union, behind Spain’s Banco Santander. Meanwhile, Banco BPM did not disclose financial terms but claimed the combined entity would have a market capitalization of around 50 billion euros, making Italy’s second-largest lender.

The potential merger has raised concerns over French influence, as Crédit Agricole, France’s largest bank, owns roughly 20% of BPM. Critics argue that such a deal could provide Paris with an indirect route into one of Italy’s most strategically important financial institutions, raising questions about MPS’s future control over its vast holdings.

Italian officials have not publicly resisted foreign ownership but there is worry among some government figures about increased French influence in strategic Italian assets, including government debt. This issue is particularly sensitive for Prime Minister Giorgia Meloni’s nationalist government, which has taken steps to protect nationally important companies from foreign influence.