Messina reignites the banking crisis

In the end, Carlo Messina, CEO of Intesa Sanpaolo, has entered the ‘Wild West’ of the banking game. It was a heated long-distance showdown with the CEO of MPS, Luigi Lovaglio. Taking advantage of the presentation of the first-half results (which exceeded market expectations), the CEO of Intesa Sanpaolo pulled out all the stops to land a few blows, knowing that on the other side stands the banker attempting to snatch MPS away from Intesa’s takeover bid in order to push through the merger with Banco BPM. Three moves aimed at dismantling this plan. The first: Messina warns that the distribution of a special dividend to MPS shareholders – a proposal reportedly being worked on precisely to counterbalance Intesa’s cash premium – must be approved by an extraordinary general meeting as well as receiving the ECB’s green light. “I realise it’s hard for them to accept,” he quipped, “but they’re subject to the passivity rule.” Second blow: according to Messina, if MPS were to sell its 13 per cent stake in Generali – another option on the table aimed at raising the funds needed to finance the merger with BPM – MPS’s share price would plummet by 20–30 per cent. And this would lead Intesa to reconsider its offer. Third blow: only with Intesa, says Messina, will MPS finally have ‘normal’ governance.

A dig following the latest clash to have erupted on Siena’s board of directors, triggered by a letter sent to Chairman Cesare Bisoni by four minority directors (excluding Corrado Passera) regarding the initiatives Lovaglio is undertaking precisely to push ahead with the merger with the Milanese bank. This clash has prompted Five Star Movement Senator Mario Turco to urge the new Consob chairman, Guido Stazi, to monitor this new, fiercely contested phase of the banking game with “independence and decisive action”. Indeed, tensions are rising as everyone awaits Lovaglio’s counter-moves, which Messina does not seem to take very seriously, having made it clear that there is absolutely no chance of a revised takeover bid price. But this is only the beginning of the final showdown.