Monte dei Paschi di Siena (MPS) has taken a bold step in the banking industry by securing control of Mediobanca through a significant share-and-cash offer valued at approximately 16 billion euros, equivalent to $19 billion. This development has sent shockwaves across Italian financial circles, especially considering MPS’s tumultuous history over the past decade as a bailed-out institution.
MPS’s journey can be traced back to its founding in 1472, but the recent history has been defined by a series of dramatic financial maneuvers. A pivotal moment occurred in November 2007 when MPS acquired Antonveneta for a staggering 9.9 billion euros from Santander, which had purchased the bank only months earlier for 6.6 billion. This acquisition set the tone for a series of complex financial struggles.
In January 2008, MPS financed the Antonveneta deal via a combination of equity issuance, junior debt, and a bridge loan—totaling nearly 10.67 billion euros. However, as the financial crisis unfolded, MPS faced increasing difficulties. In March 2009, it was forced to sell 1.9 billion euros in special bonds to the Italian Treasury to shore up its finances, marking one of the early signs of distress.
As the eurozone sovereign crisis deepened in July 2011, the Bank of Italy intervened, providing 6 billion euros in emergency liquidity to MPS due to its substantial government bond holdings. The effects were devastating, culminating in a record loss of 4.7 billion euros for the bank in March 2012, linked to goodwill writedowns.
Over the years, MPS embarked on several capital-raising exercises, including rights issues and bond placements, in attempts to stabilize its balance sheet. By July 2017, after extensive restructuring, the European Commission approved an 8.2 billion euro bailout, transferring a 68% stake in MPS to the state.
Fast forward to recent events, MPS has shown signs of recovery, including the completion of Europe’s largest bad loan securitization in October 2019. In July 2021, discussions with UniCredit to sell parts of MPS fell through, leading the bank to appoint Luigi Lovaglio, a veteran from UniCredit, as CEO in February 2022.
In late 2022, MPS raised 2.5 billion euros through a cash call to facilitate voluntary staff exits. By November 2023, the Italian government reduced its stake in MPS to 39.2% through a share placement that garnered substantial demand. By March 2024, this stake had further decreased to 26.7%, with MPS announcing a dividend payout for the first time in 13 years in May 2024.
As the banking landscape shifted, MPS launched an unsolicited buyout offer for Mediobanca in January 2025, eyeing significant stakes owned by influential figures such as construction tycoon Francesco Gaetano Caltagirone and the heirs of late billionaire Leonardo Del Vecchio.
With a reported net profit of 1.95 billion euros for 2024, MPS’s recent actions demonstrate a marked turnaround. The buyout offer saw a substantial investor response, with 62% of Mediobanca’s capital tendered by September 2025, as MPS continues to reshape its future amid Italy’s dynamic financial environment.
