Intesa lines up bid to upset BPM's €50bn bank merger

Monday, June 8, 2026

Intesa Sanpaolo and BPER Banca are preparing a joint bid to acquire Monte dei Paschi di Siena, competing directly with Banco BPM’s recent merger proposal aimed at creating a major Italian banking group. The outcome of these rival offers is crucial as it will shape the future ownership of MPS and influence national banking sector consolidation amid government concerns over foreign influence.

Intesa Sanpaolo is preparing a joint offer with BPER Banca to acquire Monte dei Paschi di Siena (MPS), entering into direct competition with Banco BPM, which earlier proposed a €50 billion merger with MPS aimed at creating a “national champion” in Italian banking.

According to multiple sources familiar with the discussions, under Intesa and BPER’s potential plan, BPER—Italy’s fifth-largest lender—would assume control of MPS’s banking operations. Intesa Sanpaolo, the country’s largest bank, would take over MPS’s recently acquired Mediobanca unit, along with its 13 percent stake in insurer Generali.

Intesa’s board held a meeting to finalize details of the joint bid, though the outcome remained undecided, according to insiders. Both Intesa and BPER have been conducting due diligence on MPS in recent weeks. Neither Intesa nor BPER responded to requests for comment, and MPS indicated it was not aware of any formal bid from the two lenders.

The proposal from Intesa and BPER emerges just hours after Banco BPM submitted a letter to MPS’s board expressing interest in a merger. BPM emphasized that its board had unanimously approved opening negotiations to explore a potential transaction with MPS. The Milan-based lender described the merger as a step toward forming a new national banking leader with a combined market capitalization exceeding €50 billion.

BPM’s offer could also enhance strategic flexibility for the group, including options relating to MPS’s stake in Generali. However, BPM did not disclose the financial terms of its proposal. As of the previous Friday’s market close, BPM was valued at approximately €20.3 billion, while MPS stood at around €27.3 billion.

The Italian government is reported to have reservations about the BPM bid, largely due to BPM’s largest shareholder being France’s Crédit Agricole. Some elements within Italy’s establishment are said to oppose the BPM-led merger, which could influence official positions on the proposed transaction.

MPS acknowledged receipt of BPM’s approach and stated it would carefully evaluate the proposal. The evolving situation signals a competitive and complex phase in negotiations over Italy’s banking sector consolidation, highlighting the strategic importance both domestic and foreign stakeholders place on control of the country’s oldest bank.