Monte dei Paschi di Siena is preparing twin acquisition bids for Banca Generali and Banco BPM as it seeks to fend off a hostile takeover attempt by Intesa Sanpaolo. The plan, backed by a majority of MPS’s board, aims to create a combined banking group valued at roughly €70bn. The all-share offers would target Banca Generali, worth close to €8bn, and Banco BPM, valued at just over €25bn, while also proposing a cash dividend for existing MPS shareholders.

Intesa Sanpaolo launched an unsolicited bid for MPS in June, valuing the Siena-based lender at approximately €36bn. Should its approach succeed, Intesa plans to dismantle MPS and sell roughly half of its 1,260 branches, the historic brand, and central infrastructure to insurer Unipol. MPS CEO Luigi Lovaglio faces a steep challenge in uniting a divided board and shareholder base to execute the dual takeover strategy.

Earlier merger discussions with Banco BPM collapsed last month after Crédit Agricole ruled out participation, effectively halting a proposed merger of equals. Both Banca Generali and Banco BPM declined to comment on the latest developments. Prime Minister Giorgia Meloni recently expressed hope that MPS would retain its identity rather than face breakup.