April 24 (Reuters) - Monte dei Paschi di Siena chief Luigi Lovaglio is considering selling a 7.4-billion-euro ($8.64 billion) stake in Generali to help fund an acquisition of Banco BPM, the Financial
MPS would only sell Generali stake under a government‑approved plan, source says
Overview of MPS and Generali Stake Developments
By Valentina Za and Andrea Mandala
April 24 (Reuters) - Monte dei Paschi di Siena could consider parting with its stake in insurer Generali as part of future development plans, but would only do so if the Rome government approves of the buyer, a source briefed on the matter said.
Importance of Generali to Italy's Financial System
Italy monitors closely changes in Generali's shareholder base because of its importance to the domestic financial system, including its role as a major buyer of Rome's sovereign debt.
MPS's Role as Main Investor
Worth 7.6 billion euros ($9 billion), Monte dei Paschi's (MPS) 13.2% holding makes it the main investor in Generali. It acquired the stake last year when it took over Mediobanca.
Conditions for a Potential Sale
A sale would only happen in a way "that safeguards Italy's national financial security," the source said, making clear that this meant any buyer must be approved by the government.
Government and Stakeholder Perspectives
Rome is keen for Generali to remain in domestic hands and have a stable shareholder base. Prime Minister Giorgia Meloni has said citizens' savings must be managed in Italy.
MPS Official Statement
A spokesperson for MPS, Italy's third-largest lender, said earlier on Friday the bank was "not studying any option to sell the Generali stake", adding it was fully focused on merging recently acquired peer Mediobanca into the group.
The spokesperson was responding to a Financial Times report that CEO Luigi Lovaglio was studying a possible sale.
Leadership Changes at MPS
Lovaglio took back the helm at MPS on Thursday after being ousted in March and voted back in by shareholders on April 15.
Influence of Major Shareholders
Disagreements over Mediobanca and the Generali stake cost Lovaglio his job, Reuters has reported. He returned thanks to the Del Vecchio family, the main investor in MPS and the second-biggest in Generali. The Caltagirone family, the No.2 investor in MPS and the fourth-largest in Generali, voted against his return.
Banco BPM Deal and Merger Possibilities
BANCO BPM DEAL
Lovaglio has previously described the Generali stake as "a nice to have" for MPS and said the Mediobanca deal would prepare MPS for a further Italian merger wave in one or two years' time.
Potential Sale to Fund Banco BPM Acquisition
The FT reported MPS could sell the stake to help fund an acquisition of rival Banco BPM. A merger has been seen as an option since BPM became an investor in MPS in November 2024 and took on fresh relevance after BPM voted last week to bring Lovaglio back. A person familiar with discussions around a potential deal said any such transaction would be paid for chiefly in shares. Banco BPM had no immediate comment.
Other Potential Suitors for Generali
Italy's top two banks Intesa Sanpaolo and UniCredit are both seen as potential suitors for Generali. However, Intesa, which owns a large insurance business and would face antitrust issues, has repeatedly denied any interest.
UniCredit's Position
UniCredit describes its Generali stake as a purely financial investment. While saying publicly that it was reducing its net stake, UniCredit has actually raised it over the past year, data showed on Thursday.
Additional Information
($1 = 0.8563 euros)
(Additional reporting by Disha Mishra in Bengaluru; Editing by Mrigank Dhaniwala, Gavin Jones, Elaine Hardcastle)
