The Italian bank is trying to fend off a hostile takeover by state-backed Banca Monte Paschi di Siena.
Mediobanca announced in April its bid for Banca Generali. (AFP pic)
ROME: Italian bank Mediobanca said today that its shareholders rejected its €6.3 billion (US$7.4 billion) bid to take over wealth management firm Banca Generali.
The acquisition plan had come against a backdrop of a series of hostile merger efforts in Italy.
Mediobanca itself is trying to fend off a hostile takeover by state-backed Banca Monte Paschi di Siena (MPS), first launched in January, which valued Mediobanca at €13.4 billion.
Mediobanca announced in April its bid for Banca Generali, saying it would use its 13.1% stake in insurer Generali to fund the transaction.
It cleared a hurdle last month when the Italian government decided not to exercise special “golden powers” that allow it to set certain restrictive conditions on takeovers in strategic sectors.
However, the bank said today that its shareholders “rejected the board’s proposal” to buy Banca Generali.
“Mediobanca, acknowledging the outcome of the meeting, declares the offer on Banca Generali lapsed,” the bank said in a statement.
“This is clearly an opportunity, for now, missed for the development of our bank and the Italian financial system,” Mediobanca chief executive Alberto Nagel said in the statement.
