The market blessed the Monte Paschi operation of Banco Bpm and Anima, as well as the entrepreneurs Francesco Gaetano Caltagirone and the Del Vecchio family. They took over the 15% sold by the Treasury for 1.10 billion euros, effectively creating a third banking hub. Everyone can be satisfied: the state has taken a burden off itself, having agreed with the European Commission on privatization by 2024. It is left with a minority share of 11.2% and no longer has to fear possible incursions from abroad to take over Siena.
And then there is Bpm, which is scaling up its subsidiary Anima these days and which will be able to exploit the newly acquired asset for 5% of the capital (plus another 4% owned by Anima itself) to distribute insurance policies through branches. Finally, satisfaction also for Caltagirone-Del Vecchio, already partners in Mediobanca e General.
Rematch of Del Vecchio-Caltagirone
The two protagonists of the nascent third pole have so far been snubbed by Piazzetta Cuccia, which controls the Trieste insurance company with 13.10%. Despite holding a total of 27.57% (19.81% Del Vecchio and 7.76% Caltagirone), they have no say in governance. Their goal of taking over Mediobanca to control Generali faded two years ago. They do not possess the banking requirements to be able to raise capital. They are shareholders of the company itself with 9.93% and 6.92% respectively.
Generali governance at stake
The third prong strengthens them. They can no longer be ignored, being at the head of one banking-insurance reality of weight. On the stock market, MPS alone is now worth around 7.7 billion, while BPM is worth another 10.7 billion. Together, they far exceed Mediobanca’s 12.3 billion. And the Caltagirone-Del Vecchio duo could make the horse’s move, in view of the renewal of Generali’s board of directors next spring: sell their share to Bpm. By doing so, CEO Giuseppe Castagna would have the right to rise to the point of controlling the capital.
Downstream, the 16.85% held in the company would allow entrepreneurs to support Mediobanca led by BPM to obtain control.
What happened in recent days was a complete system operation for the birth of a third hub after Intesa Sanpaolo and Unicredit. Giorgia Meloni’s government orchestrated behind the scenes the sale of MPS not to Unipol, as was thought until a few weeks ago, but to the Milanese institute. The entry of two non-banking partners allows Castagna to contain the outlay and at the same time not have to fear that someone else will take control in the near future. He will be able to better enhance the insurance asset he already controls with 22.38%. The best would come with the possible takeover of Mediobanca. At that point, he would find himself at the head of another insurance giant.
Third pole tempting opportunity for Bpm
At current stock market prices, the acquisition of the Caltagirone and Del Vecchio shares alone would cost Bpm around 3.4 billion. It could reach close to 30% without the need to launch a public takeover offer. It should spend another 300 million. And 1.58 billion have already been earmarked for Anima’s takeover. The sum would reach approximately 5.3 billion. That’s a lot for a bank with 6 billion in profits expected in the four-year period 2023-2026, of which 4 have already been promised to shareholders in the form of dividends. But the birth of the third center may have messed up the plans. The morsel is too tempting and a historic opportunity presents itself to enter the historic parlor of finance through the main door and holding the deck of cards in your hand.
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Banking Shenanigans: The Birth of a Third Hub
Ah, the world of banking! Where else can you find more drama than a soap opera, but with slightly slimmer ties? In case you’ve missed the latest episode, the market seems to be clapping its hands for the latest maneuverings involving Banco BPM, Anima, and a cast of entrepreneurial titans. It’s the kind of plot twist that would make even the most seasoned telenovela star wonder, “Did I just read that?!”
Our story begins with a rather princely sum—1.10 billion euros, to be precise. This hefty price tag saw the Treasury selling off a 15% stake, creating what they’re calling a third banking hub. And who are the kings of this new castle? Well, step forward Francesco Gaetano Caltagirone and the Del Vecchio family. They’re not just here to sip wine and watch the stocks—they’re rolling up their sleeves!
The State’s Grand Exit
Let’s not gloss over it, shall we? The state’s getting a solid pat on the back for easing its financial burden. You’ll recall the European Commission’s looming threat of privatization by 2024? News like that can age a minister faster than a bad cheese! With the Treasury now holding a mere 11.2%, it doesn’t have to worry about being eaten alive by international “incursions”—no more endless board meetings filled with nerve-wracking reports and dodgy PowerPoints!
BPM’s Big Plans
While the state does a happy little dance, Banco BPM is busy flexing its muscles. With Anima ramping up operations, they’re planning to integrate this newly acquired asset and unleash a torrent of insurance policies. It’s like a thrilling episode of Deal or No Deal, but instead of a briefcase full of cash, they’re handing out policies like candy—who doesn’t want a good deal on life insurance, right?
The Dynamic Duo: Del Vecchio and Caltagirone
Now, let’s get to the guts of it: Del Vecchio and Caltagirone—these two have been playing a strategic game of Monopoly but somehow ended up in the “Community Chest” instead of the board. They’ve amassed a 27.57% stake, but it’s about as effective as a chocolate teapot when it comes to governance at Mediobanca. Their hopes of gobbling up Mediobanca to control Generali went south faster than a snowman in July.
Generali’s Governance Drama
But hold the front page! Enter the third pole, potentially transforming the tables. With BPM’s valuation and MPS now on board, the dynamic duo might find themselves in a stronger position. Think of it as the wrestling match of financial giants, where one missed body slam could spell disaster. Their collective worth is significantly outpacing Mediobanca and suddenly everyone’s taking notice.
What’s Next for Our Fiery Entrepreneurs?
With Generali’s board renewal looming like the end of a reality show, the Caltagirone-Del Vecchio duo could do the financial equivalent of a surprise twist. Selling their shares to BPM not only tidies up their portfolio but could allow CEO Giuseppe Castagna to take the reins—talk about a power play!
A Deliciously Tempting Opportunity
Now let’s tackle the juicy bits—acquiring the shares of Caltagirone and Del Vecchio would cost BPM around 3.4 billion euros, potentially catapulting them to nearly 30% shareholdings without needing to launch a public offer. They’ve earmarked cash like it’s going out of fashion, but let’s not forget they’ve got promises to shareholders to honor too. Despite their financial balancing act, this could be a golden ticket to re-enter the upper echelons of finance, or perhaps just a detour into a high-stakes game of financial poker.
As the drama unfolds, you might want to grab some popcorn. With Giorgia Meloni’s government orchestrating behind the scenes, and with intriguing developments—it seems the game is far from over. So, keep your eyes peeled, because in the world of finance, the twists and turns can be as dizzying as a rollercoaster ride! 🎢
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The market has shown strong support for the significant transaction involving Banco BPM and Anima, marking a pivotal moment for key stakeholders including prominent entrepreneurs Francesco Gaetano Caltagirone and the Del Vecchio family. The duo successfully acquired the 15% stake sold by the Treasury for an impressive sum of 1.10 billion euros, effectively establishing a robust third banking hub in the Italian financial landscape. This development is a major relief for the state, which has successfully shed a financial burden by negotiating with the European Commission to privatize by 2024. The government’s involvement is reduced to a minority stake of 11.2%, alleviating concerns over potential foreign takeovers of the historic Siena bank.
Meanwhile, Banco BPM is strategically enhancing its subsidiary Anima, aiming to leverage this bolstered position to explore opportunities in distributing insurance policies across its branches. This aligns with BPM’s recent focus on expanding its market presence, as it aims to capitalize on the newly acquired asset equivalent to 5% of the capital, along with another 4% directly held by Anima itself. The collaboration between Caltagirone and Del Vecchio, who are already established partners through their stakes in Mediobanca and Generali, adds an additional layer of synergy to this venture.
Rematch of Del Vecchio-Caltagirone
However, despite their intertwined ambitions, the duo of Caltagirone and Del Vecchio has faced significant challenges in gaining influence within Piazzetta Cuccia, which holds a controlling stake in the Trieste insurance firm at 13.10%. Holding a collective stake of 27.57% (comprising 19.81% from Del Vecchio and 7.76% from Caltagirone), their influence in governance remains marginal. Their previously envisioned strategy to acquire Mediobanca and subsequently wrest control of Generali has dimmed over the past two years, largely due to shortcomings in meeting essential banking capital requirements. Currently, they hold shares in Mediobanca itself with stakes of 9.93% and 6.92%, respectively.
Generali governance at stake
The recent developments have fortified their position significantly. They can no longer be overlooked, as they now lead a formidable banking-insurance reality that commands attention. On the stock market, MPS is valued at approximately 7.7 billion, while BPM adds another 10.7 billion to this figure. Together, these financial giants substantially outperform Mediobanca’s valuation of 12.3 billion. The Del Vecchio-Caltagirone partnership may consider a strategic move pending the next renewal of Generali’s board of directors in the upcoming spring: selling their holdings to BPM. Such an action would empower CEO Giuseppe Castagna to potentially take control of the capital structure.
Furthermore, the 16.85% stake they hold in Generali would enable them to bolster support for Mediobanca, led by BPM, thereby reinforcing their influence over its governance.
The recent events reflect a comprehensive strategy aimed at establishing a formidable third hub, following in the footsteps of Intesa Sanpaolo and Unicredit. The government’s involvement has been instrumental in executing the sale of MPS to the Milanese institution, opting against the previously speculated sale to Unipol. The inclusion of non-banking partners such as Caltagirone and Del Vecchio empowers Castagna to manage expenditures more effectively, all while blocking potential takeover threats from other entities in the near term. He can now fully harness the value of the insurance asset he already manages, which stands at 22.38%. The situation could escalate further with a potential acquisition of Mediobanca, placing him at the helm of another significant insurance powerhouse.
Third pole tempting opportunity for Bpm
At the current stock market valuations, the prospective purchase of Caltagirone and Del Vecchio’s shares would necessitate an outlay of approximately 3.4 billion for BPM. This transaction could elevate BPM’s stake close to 30% without triggering the need for a public takeover bid, requiring an additional investment of roughly 300 million. With an already earmarked 1.58 billion allocated for Anima’s acquisition, the total cost would reach around 5.3 billion. Such figures are considerable for a bank projected to generate 6 billion in profits from 2023 to 2026, with 4 billion already promised to shareholders in dividends. Nonetheless, the emergence of this third center presents tantalizing prospects. The situation is ripe for BPM to step into a prestigious position within the financial sector, wielding significant influence alongside its newly reinforced partnerships.
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How might the alliance between Caltagirone and Del Vecchio reshape governance in Italy’s financial sector following recent stake acquisitions?
Nt shifts in the banking landscape have cast a spotlight on the emerging “third hub” in Italy, prompted by recent maneuvers by Banco BPM and major stakeholders. The concerted effort of Francesco Gaetano Caltagirone and the Del Vecchio family to secure a 15% stake from the Treasury for 1.10 billion euros demonstrates a robust strategic alliance poised to reshape the market dynamics. With the government’s reduction to a minority stake of 11.2%, the threat of international incursion looms less, and this exit symbolizes a significant realignment in Italy’s financial sector.
Banco BPM’s focus on integrating Anima—a crucial asset bolstering their capabilities—signals an ambition not just to expand its insurance portfolio but also to fortify its overall market position. By leveraging the potential of Anima at 5% of its capital, Banco BPM is set to distribute insurance products both efficiently and widely across its branches.
Yet within this narrative, the relationship between Caltagirone and Del Vecchio takes center stage. Their shared 27.57% stake at Mediobanca and Generali’s 13.10% controlling shares remains precarious. The elusive quest for greater governance control has met several setbacks, and their initial plans to seize Mediobanca—catalyzing a move towards Generali—appear stymied by regulatory requirements and the complexities of capital demands.
However, with BPM’s growing presence and ambitious strategy to acquire more shares in the insurance market, the question arises: could this partnership introduce a game-changing twist? If they manage to secure the stakeholders’ support during the upcoming board renewal for Generali, selling their stake to BPM may not only streamline their interests but also hand operational control over to a CEO with his eyes set on growth.
In this fast-evolving narrative, the stakes remain high as investors and market watchers eagerly anticipate the next developments. The intertwining relationships foster a dynamic atmosphere ripe for transformation, leading to potential collaborations that may shake the halls of power in Italian finance. As we await future episodes in this ongoing saga, the momentum suggests that the del Vecchio-Caltagirone alliance could indeed orchestrate a dramatic turn of events, fueling interest and excitement in the financial community.
the unfolding drama is emblematic of the capital markets—a blend of ambition, strategy, and opportunistic maneuvers that encapsulate the essence of modern finance. Investors and stakeholders alike must remain vigilant, as the ripples of these decisions are sure to reverberate throughout the landscape, promising intrigue and volatility in this riveting financial tale.
