Bidding war erupts for world's oldest bank as Italy's Intesa gatecrashes BPM offer

Italy's largest lender, Intesa Sanpaolo, on Monday tabled a €12 billion cash-and-stock counter-bid for Banca Monte dei Paschi di Siena, the Siena-based institution founded in 1472 and considered the world's oldest operating bank. The offer pitches a premium of about 22% over Banco BPM's €9.8 billion bid unveiled last month.

Intesa CEO Carlo Messina said "the time has come for sustainable consolidation in the sector," according to a statement accompanying the move. A successful deal would create Italy's largest banking group, lifting total assets above €1 trillion. Italy's Treasury, which still owns about 11% of MPS, will see the counter-bid reopen the question of how to exit its remaining stake.

In Milan trading, Monte dei Paschi shares jumped 11% on the open and BPM shares fell 3%. European Central Bank supervisors and the Italian competition authority confirmed they would review the offers in coming weeks. Analysts say a clear path to a deal by year-end could intensify pressure for cross-border consolidation across European banking. This article is not investment advice.