Banca Monte dei Paschi di Siena S.p.A.

Italy's largest bank, Intesa Sanpaolo, has moved closer to acquiring its rival Monte dei Paschi di Siena after MPS's largest shareholder accepted its improved takeover offer. Delfin, the financial holding company that owns 17.6 percent of MPS, has committed to selling its stake on the basis of Intesa's 35 billion euro stock-and-cash offer, equivalent to 39 billion dollars, Intesa announced on the evening of the 4th. Facing a challenge from MPS chief executive Luigi Lovaglio, who unveiled a complex defence plan in August, Intesa said on the 3rd that it would pay an additional 800 million euros in cash if MPS shareholders rejected that defence plan. The improved terms raise the 3 billion euro cash portion by 25 percent, but based on the closing price on the 2nd, the overall improvement amounts to just 2.3 percent. Intesa said on the evening of the 3rd that it would withdraw its takeover proposal if MPS shareholders approved the defence plan on the 29th, meaning shareholders must vote down the plan if they want the improved offer. According to Intesa, Delfin, the financial holding company of the Del Vecchio family that controls EssilorLuxottica, the world's largest eyewear maker, has committed to opposing Lovaglio's plan on the 29th.