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Investing.com -- Shares in Monte dei Paschi (MPS) fell again on Tuesday following the announcement of a surprise takeover bid for Mediobanca (OTC:MDIBY).
MPS revealed a buyout bid for Mediobanca amounting to 13.3 billion euros ($13.9 billion) on Friday. However, the value of this all-share offer has seen a decrease due to investor skepticism regarding the proposed merger.
By 0920 GMT on Tuesday, MPS shares had dropped by 1.9%, following a 2% decline on Monday and a 7% fall on Friday. A contributing factor to this decrease is the decision by Citi analysts to lower their rating on MPS stock.
The proposed exchange ratio for the takeover bid places a value of 14.735 euros on each Mediobanca share. However, Mediobanca shares were trading at 16.435 euros on Tuesday.
According to Italian regulations, the Mediobanca board can only provide formal advice to shareholders once the bid's prospectus is made public, which is expected to occur in a few months.
The board is anticipated to express its unfavorable view of the bid from MPS, a smaller rival that was rescued by the state from collapse in 2017.
Over the weekend, Mediobanca CEO Alberto Nagel communicated to employees via a letter that the offer had not been previously agreed upon. He stated that the bank would decide on the best course of action to protect the interests of its stakeholders.
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