Milan, 1 August (LaPresse) – “We want to complete the deal” regarding Montepaschi and “we will do everything possible to achieve this. It is very important because it would enable us to accelerate our business plan, bringing forward its objectives by around three years”. This was reiterated by Carlo Messina, CEO of Intesa Sanpaolo, in an interview with CNBC Europe last Thursday, published in full today by Milano Finanza. “We believe that the acquisition can create value for both Intesa Sanpaolo’s shareholders and those of MPS,” explains CEO Messina, quoting Mario Draghi’s phrase ‘whatever it takes’.” “With the acquisition, we will reach 2,000 billion in assets under management. And we will be able to enhance the synergies we already have within the group,” emphasises the CEO of Ca’ de Sass. “Following the integration, around 5,000 people could leave on a voluntary basis, facilitating generational renewal.” Messina explains the rationale behind the public takeover bid for Rocca Salimbeni. “The offer we have put forward values MPS at a P/E multiple comparable to that of JPMorgan, Morgan Stanley and Goldman Sachs. Intesa trades at a P/E of around 11 times, in line with UniCredit and Santander, whilst the implied valuation of MPS in our offer stands at 15 times. We therefore believe we have put forward a sound proposal. But we can also guarantee something that is currently lacking at MPS: peace of mind. In other words, a safe haven for shareholders,” emphasises Messina. Regarding the banking sector in Europe, Messina states that “there is a clear need to increase the size and capitalisation of European banks that wish to play a leading role in the future. A comparison with the United States and China puts Europe in a ridiculous position. UniCredit has made an excellent choice, consistent with its commercial banking-oriented business model. Our model is different. That does not detract from the fact that we are the two largest Italian banking groups and two pillars of the Italian stock market. I would also like to emphasise that relations are good. We are competitors, but also partners who can collaborate in the future on various fronts.” Whilst Banco BPM’s decision to abandon the merger with Monte dei Paschi di Siena has led observers to wonder whether the great game of Italian ‘Risiko’ is set to begin anew, the issue of European banking consolidation remains at the forefront. The CEO of Intesa points out: “As far as ‘our deal’ is concerned, there is one fundamental advantage: there is no integration risk. And it is a straightforward transaction. But even Unicredit’s project, whilst formally cross-border, is in reality similar to a domestic merger because it involves the integration of two German entities.” “I believe this is the future for all operators who wish to play a leading role in Europe,” he concludes.
MPS, Messina (Intesa): “The deal will create value for our shareholders and those of Montepaschi”
Milan, 1 August (LaPresse) – “We want to complete the deal” regarding Montepaschi and “we will do everything possible to achieve this. It is very important because it would enable us to accelerate our business plan, bringing forward its objectives by around three years”. This was reiterated by Carlo Messina, CEO of Intesa Sanpaolo, in an interview with CNBC Europe last Thursday, published in full today by Milano Finanza. “We believe that the acquisition can create value for both Intesa Sanpaolo’s shareholders and those of MPS,” explains CEO Messina, quoting Mario Draghi’s phrase ‘whatever it takes’.” “With the acquisition, we will reach 2,000 billion in assets under management. And we will be able to enhance the synergies we already have within the group,” emphasises the CEO of Ca’ de Sass. “Following the integration, around 5,000 people could leave on a voluntary basis, facilitating generational renewal.” Messina explains the rationale behind the public takeover bid for Rocca Salimbeni. “The offer we have put forward values MPS at a P/E multiple comparable to that of JPMorgan, Morgan Stanley and Goldman Sachs. Intesa trades at a P/E of around 11 times, in line with UniCredit and Santander, whilst the implied valuation of MPS in our offer stands at 15 times. We therefore believe we have put forward a sound proposal. But we can also guarantee something that is currently lacking at MPS: peace of mind. In other words, a safe haven for shareholders,” emphasises Messina. Regarding the banking sector in Europe, Messina states that “there is a clear need to increase the size and capitalisation of European banks that wish to play a leading role in the future. A comparison with the United States and China puts Europe in a ridiculous position. UniCredit has made an excellent choice, consistent with its commercial banking-oriented business model. Our model is different. That does not detract from the fact that we are the two largest Italian banking groups and two pillars of the Italian stock market. I would also like to emphasise that relations are good. We are competitors, but also partners who can collaborate in the future on various fronts.” Whilst Banco BPM’s decision to abandon the merger with Monte dei Paschi di Siena has led observers to wonder whether the great game of Italian ‘Risiko’ is set to begin anew, the issue of European banking consolidation remains at the forefront. The CEO of Intesa points out: “As far as ‘our deal’ is concerned, there is one fundamental advantage: there is no integration risk. And it is a straightforward transaction. But even Unicredit’s project, whilst formally cross-border, is in reality similar to a domestic merger because it involves the integration of two German entities.” “I believe this is the future for all operators who wish to play a leading role in Europe,” he concludes.
