MPS, 2024 the decisive year: merge with others or run alone
2024 could prove to be a decisive year for Monte dei Paschi. This is the vision of the Minister of Economy, Giancarlo Giorgetti, holder of 39% of the bank's shares. In an interview with Sole 24 Ore, the head of the Treasury stated that he was “convinced that a solution capable of redefining the banking system from a polycentric perspective could materialize in 2024.” However, it still remains to be discovered who will be the chosen partner for Monte, which could be Bper, UniCredit, Banco Bpm or another player that has not yet emerged in the experts' analyses. In response to Giorgetti's words, the market has already reacted positively, causing the value of the shares to rise Monte by 6.1%, thus exceeding 4 billion in market capitalization. A result that will also satisfy the Treasury, whose share is now valued at almost 1.6 billion euros.
Monte dei Paschi recorded notable success on the stock market, with an increase of 6.14% to 3.233 euros, positioning itself at the top of the main index. The optimistic statements of the Minister of Economy, Giancarlo Giorgetti, on the prospects of privatization contributed to pushing the bank's shares higher. Giorgetti stressed that the bank is now “much more desirable” thanks to the positive results achieved by CEO Luigi Lovaglio, who led the company through a 2.5 billion euro capital increase and the reduction of 4,200 employees last year. Thanks also to the increase in interest rates which supported the interest marginthe first nine months of 2023 saw a net profit of 929 million euros, with the prospect of reaching 1.1 billion by the end of the year.
Giorgetti expressed confidence in the possibility that the Treasury could sell its stake in the bank in the coming months, as foreseen in the agreements with the European Commission. The sale of 25% of Monte at the end of November, which brought in 900 million euros, was a significant step in this direction. The minister stressed that the exit of the Treasury is already underway successfully and that they will continue to carry out operations when it is in the best general interest, without rushing into the sale to the first bidder. With Monte now healed and free from legal burdens after the acquittals of the former leaders, the bank can now participate in negotiations for a partnership without having to accept any offer that comes along.
However, Giorgetti admitted that at the moment there are no clearly defined potential partners, and despite the various rumors, the offer seems to struggle to manifest itself. The objective, according to the minister, is that the solution that will materialize in 2024 can redefine the banking system in a polycentric way, offering Monte dei Paschi new opportunities and prospects.
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