AKTIONÄR tip pays off: Takeover almost complete

UniCredit has gradually increased its stake in Commerzbank and is highly likely pursuing a takeover. Industry consolidation has been underway in Italy for years. Now, with the merger of Monte dei Paschi and Mediobanca, a new banking giant is emerging. DER AKTIONÄR recommended an early entry.

Alongside UniCredit, Intesa Sanpaolo is the second major player in Italy's banking landscape. The government in Rome, however, has long sought to create a third major financial center and intervened behind the scenes in the industry's consolidation. This was achieved through the state's stake in the once scandal-ridden bank Monte dei Paschi di Siena (MPS).

To this end, MPS has its eye on Mediobanca. The latter is strong in asset management and investment banking and would complement MPS's retail focus well. Furthermore, the acquisition of Mediobanca would provide the bank with a previously lacking international reach.

Mediobanca, however, rejected a takeover until recently. Now, MPS has acquired 62.3 percent of the shares by increasing its takeover offer. Mediobanca CEO Alberto Nagel has offered his resignation. With total assets of €237.5 billion, the bank is emerging as a relatively medium-sized bank at the European level. However, this could only be the basis for further acquisitions. Mediobanca also holds a 13.2 percent stake in the insurance company Generali, which will now be incorporated into the new group.