Monte Paschi ‘Unthinkable’ Move on Larger Rival Stuns Italy
- Mediobanca takeover could create country’s third-largest bank
- Government, billionaire investors are backing the deal
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The last time Banca Monte dei Paschi di Siena SpA bought another lender, it was the beginning of the road to collapse and nationalization.
So when Paschi announced an unsolicited €13.4 billion ($14.1 billion) offer for larger rival Mediobanca SpA on Friday morning, Italy’s financial sector was in shock. The government had as recently as November been knocking on doors for a buyer for Paschi.