MPS shareholders set to sink CEO's defence plan against Intesa bid

SIENA, Italy, Oct 29 (Reuters) - Monte dei Paschi di Siena BMPS.MI shareholders were set on Thursday to vote down the defence plan CEO Luigi Lovaglio put forward to fend off a €33 billion ($37 billion) takeover offer by Intesa Sanpaolo ISP.MI.

The plan was expected to be rejected as Intesa has secured the backing of the main MPS shareholders, Delfin and Caltagirone, making it impossible for Lovaglio to muster the required two-thirds approval.

To block Intesa's bid, Lovaglio has proposed twin all-share acquisition offers for rival mid-sized bank Banco BPM BAMI.MI and wealth manager Banca Generali BGN.MI worth a combined €34 billion.

Lovaglio, who took the reins in 2022, has successfully restructured MPS and led it to acquire Milanese merchant bank Mediobanca MDBI.MI - the biggest deal so far in the country's banking consolidation process.

"We have accomplished what many believed impossible over the past four years," Lovaglio said at Thursday's shareholder meeting.

The CEO said the Mediobanca acquisition was delivering better results than expected.

MPS shareholders were also due to vote on Thursday on the merger of Mediobanca into MPS, a plan which Intesa has asked them to reject without, however, making it a condition for its offer to proceed.

"I find it surprising that Intesa Sanpaolo, which was initially favourable to the Mediobanca merger, has now changed its mind," Lovaglio said.

Intesa has conditioned a sweetened takeover bid for MPS to the Tuscan bank's investors rejecting the twin offers for Banco BPM and Banca Generali.

Under Italian takeover laws, any management initiative that could thwart a buyout offer must first gain shareholder approval.

MPS Chairman Cesare Bisoni said shareholders representing 65.86% of the share capital were present at Thursday's meeting. ($1 = 0.8971 euros)