The third pole focuses on Trieste: Generali is in the crosshairs, it was a systematic operation

Table of Contents

• 1 Del Vecchio-Caltagirone Reversion
• 2 General management involved
• 3 A shameful chance of the third pole for Bpm
• 4 How might‌ the acquisition ‍of Monte‌ Paschi shares impact the strategic direction⁣ of Banco Bpm and its competition with other financial institutions?

The market blessed the Monte Paschi activities of Banco Bpm and Anima, as well as the entrepreneurs Francesco Gaetano Caltagirone and the Del Vecchio family. They took over the 15% which the Treasury sold for 1.10 billion euros, effectively creating a third banking institution. Everyone can be satisfied: the state has taken responsibility of itself, having agreed with the European Commission on privatization by 2024. It is left with a minority share of 11.2% and it no longer needs to fear invasions from abroad to take over Siena.

And then there is Bpm, which is raising its subsidiary Anima these days and will be able to take advantage of the newly acquired funds for 5% of the capital (as well as another 4% with Anima itself) to distribute insurance policies through branches. Finally, satisfaction also for Caltagirone-Del Vecchio, already partners in Mediobanca e General.

Del Vecchio-Caltagirone Reversion

Piazzetta Cuccia, who controls the Trieste insurance company with 13.10%, is the two main characters of the third pole that has come apart so far. Despite holding a total of 27.57% (19.81% Del Vecchio and 7.76% Caltagirone), they have no say in management. Their goal of taking over Mediobanca to control Generali was dropped two years ago. They do not have the banking requirements to be able to raise capital. They are shareholders of the company itself with 9.93% and 6.92% respectively.

General management involved

The third prong strengthens them. They can no longer be ignored, to be 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 move, as the Generali board of directors renews next spring: sell their share to Bpm. By doing so, the Chief 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 BPM-led Mediobanca to gain control.

What happened in the last few days was the operation of a complete system for the birth of a third center after Intesa Sanpaolo and Unicredit. Giorgia Meloni’s government established the MPS sold not to Unipolas expected a few weeks ago, but at the Milanese institute. The entry of two non-banking partners allows Castagna to contain the expenditure and at the same time not to fear that someone else will soon take control. He will be able to better increase the insurance fund he controls by 22.38%. The best would come with the takeover of Mediobanca. At that time, he found himself at the head of another insurance giant.

A shameful chance of the third pole 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 almost 30% without the need to launch a public takeover offer. He should spend another 300 million. And 1.58 billion has already been earmarked for the takeover of Anima. The amount reached about 5.3 billion. That’s a lot for a bank with an expectation of 6 billion in profits in the four years 2023-2026, 4 of which have already been promised to shareholders in the form of dividends. But the birth of the third center may have spoiled the plans. The morsel is too tempting and a historic opportunity presents itself to enter the historic financial paradise through the main door holding the deck of cards in your hand.

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