Investors in Monte dei Paschi di Siena overwhelmingly rejected Chief Executive Luigi Lovaglio’s plan to acquire Banca Generali and Banco BPM, clearing the path for Intesa Sanpaolo’s €35 billion takeover bid .
The shareholder vote on Thursday saw 63.65 percent oppose the defensive mergers proposed by Lovaglio, who had framed the acquisitions as a way to fend off Intesa’s approach . The rejection removes a major obstacle to what could become one of Italy’s largest banking mergers.
Lovaglio acknowledged the setback, stating that Intesa’s bid represented a shift in direction for the bank. He had previously argued that his strategy had delivered on promises over four years, but investors opted against the defensive moves .
The vote leaves Monte dei Paschi, the world’s oldest bank, vulnerable to Intesa’s offer, which now faces fewer hurdles . German business daily Handelsblatt noted the decision increases the likelihood of a historic consolidation in Italy’s banking sector .
