Italian Bank Monte dei Paschi Initiates €13 Billion Takeover Bid for Mediobanca

Monte dei Paschi di Siena has initiated a €13.3 billion all-share acquisition bid for Mediobanca, signaling a new era in Italian banking. The proposal entails exchanging 23 shares of Monte dei Paschi for every 10 shares of Mediobanca, offering a 5% premium over the previous closing price. The merger is projected to yield annual pre-tax advantages of €700 million and enable Monte dei Paschi to make use of tax credits totaling €500 million per year for six years. The completion of the transaction is expected by the end of September, following Italy's endeavors to re-privatize Monte dei Paschi.