The results mark a key step toward Intesa Sanpaolo taking control of the Italian bank
By Michael Hennessey
Banca Monte dei Paschi di Siena shareholders have rejected twin bids to buy Banca Generali and Banco BPM, clearing the way for the bank's sale to Intesa Sanpaolo.
Around 91% of voters at Thursday's meeting rejected the proposed offers, valued together at nearly $40 billion, which Monte dei Paschi Chief Executive Luigi Lovaglio launched in August to try to fend off Intesa's planned takeover.
To win approval, Lovaglio's plan needed support from a two-thirds majority at the meeting.
The shareholder vote is the latest development in a fierce round of consolidation efforts which have shaken up Italian banking.
The results mark a key step toward Italy's largest bank Intesa taking control of Monte dei Paschi, which is widely considered to be the world's oldest bank still in operation.
Intesa previously sweetened its offer for Monte dei Paschi to 31.4 billion euros ($35.11 billion), but warned it could pull out if shareholders in the target backed the rival deals for Banca Generali and Banco BPM.
Intesa has received authorization from the European Central Bank for the takeover, but is still awaiting approval from the Italian markets regulator as well as the country's antitrust body.
The acceptance period for Intesa's takeover offer is due to start next month.