The Italian nature of the MPS project is armored. The Treasury sold 15% of Monte Paschi Siena to an Italian consortium, thus exiting a little more (as requested by Brussels), but at the same time protecting the institution from the market (France first and foremost). 5% goes to Banco Bpm, 3% to Anima (which already has 1%), Caltagirone and Delfin (the Del Vecchio heirs) divide the remaining 7% (3.5% each). Together they block MPS and the government drops from 26.7% to 11.7%, collecting 1.1 billion euros. Market response? This morning rally in Piazza Affari with MPS at +10.8%.
The Treasury, led by Giancarlo Giorgetti, doubled the initial offer due to higher-than-expected demand and so instead of the expected 7% it yielded 15%. The government had made a commitment to Europe to reduce state participation below 20% by 2024. Done, but securing MPS from foreign aims. Thus the minister of economy involved bankers (such as Giuseppe Castagna of Bpm) but also entrepreneurs, such as Francesco Gaetano Caltagirone, who thus returns to Siena and can work on strengthening a bank closer to Rome, his old objective.
Now Banco Bpm, Anima, Delfin and Caltagirone hold an important share of the bank. Banco Bpm has acquired 5% of Mps, a move that aligns with the recent public takeover offer (OPA) on Anima, a company with which Mps has a strategic distribution agreement for its financial products. Once the operation is concluded, with the integration of Anima, Banco Bpm will come to hold a combined share of 9% of MPS, strengthening its position and protecting Anima’s distribution agreements with the Sienese institution.
The remaining 7% was acquired equally between the Caltagirone group and Delfin, the financial stronghold of the Del Vecchio family, each of which invested to obtain a 3.5% share. For Francesco Gaetano Caltagirone this is a return in style: the entrepreneur had been vice president of MPS until 2012, before leaving due to disagreements over the management of the institute. This move could also indicate a desire to strengthen its positions in other strategic holdings such as Mediobanca and Generali. Delfin also thus confirms its interest in the Italian banking and insurance system, becoming one of the leading players in a possible new banking risk in Italy.
The sale brings the Treasury a proceeds of 1.1 billion which is added to the previous 1.6 billion collected in the first two sales tranches, bringing the total proceeds for the State from the partial privatization of the institution to 2.7 billion. An operation of “economic sovereignty” which represents a sign of continuity in the privatization strategy, but at the same time a decisive protection of the national interest. This Italian ownership structure could act as a deterrent against foreign acquisitions and suggests the construction of a third banking hub in the country, behind Intesa Sanpaolo and UniCredit.
