Italy’s Monte dei Paschi di Siena (MPS) is focused on integrating recently acquired Mediobanca and is not holding merger talks with Banco BPM, CEO Luigi Lovaglio said on Friday.
Italian media reported on Thursday that contacts over a long-mooted tie-up were accelerating, with news agency Adnkronos saying meetings had taken place after Lovaglio was reappointed on April 15.
Asked about the report, Lovaglio denied any talks and said he was fully focused on the Mediobanca merger.
Banco BPM CEO Giuseppe Castagna has said his bank, which last year fended off a takeover attempt by bigger rival UniCredit, is exploring merger options.
He has cited MPS and Credit Agricole Italia as the most obvious candidates, while cautioning that timing could be an issue – in reference to MPS’s ongoing integration of Mediobanca.
MPS completed its €16 billion ($18 billion) takeover of Milan-based merchant bank Mediobanca last year. It is now in the process of buying the 14% it doesn’t already own and merging Mediobanca into MPS by the end of the year.
Source: Reuters.com