Market volatility will not affect the Medioban deal: Monte dei Paschi CEO

Siena, Italy – Monte dei Paschi Di Siena Holds firmly over plans to obtain Mediobanca Despite the ongoing market turbulence of CNBC, 13 billion euros ($ 14.3 billion) ($ 14.3 billion), it will end the deal in July.

The world’s oldest bank still operates, surprised investors in January All share suggestions for MediobancaA prestigious body aimed at wealth management and investment banking. Mediobanca rejected the proposal by denying it as one “Destructive” the action that is deprived of financial language.

Monte Dei Paschi, in the years he encountered several difficulties, when it was the most important whole The Italian government could not collect a lot in need of private investors in 2017. The Italian government has sold the majority in Monte dei Paschi and currently represents 12% less than the ownership.

CEO of the bank Luigi Lovaglio told CNBC on Monday that Monte dei Paschi “Back” and “managing our destiny.”

When a problem may be a problem for the expansion plans of the ongoing market, Lovaglio said: “(Sunday) The situation will not affect our consent. “

“In the opposite (market situation) confirms the issues of measurement, (this) said,” he said, adding, “they would have the ability to react faster,” he said.

Last market volatility has led to some companies to put some deals. British private capital company 3i group plc have It was reported to have something Animal food has postponed a sale of MPMi’s manufacturer, Fintech has also put in Klarna IPO grip plans.

Analysts were divided into the benefits of the transaction between Monte dei Paschi and Mediobanca. Deutsche Bank said he ignored some potential opportunities for Monte dei Paschi, including a larger distribution policy in mid-March in mid-March.

Other analysts warn about a limited synergy by combining two different banks. For example, Barclays said that in Monday Mediobanca, the more skeptical view of potential gains, which cut the price target for Monte dei Paschi. “Monte dei Paschi must decide to spend more than the most of the mediobank institutional shareholders, can already reduce capital,” said Barclays.

Speaking to CNBC, Lovaglio presents the proposal for Mediobanca “fair price” and did not comment that the company would be sweetened to make medioban shareholders more attractive to shareholders.

“I hope we can complete the contract in July,” he said.

In Monday, Monte dei Paschi and Mediobanca shares in the global capital markets, both are close to about 5%. Monte Dei Paschi, for announcing his intention to buy Medioban in January 24, the second was about 14% of their shares, and 8.5% before the previous one.

Monte Dei Paschi’s proposal for Mediobanca came in the period of more consolidation efforts in the Italian banking. Wholesale Announced last year suggest get an opponent Bank BPM for about 10 billion euros.

Lovaglio said these proposals represent the first wave of internal consolidation for Italian banks.

“I believe that this is the first stage, and will probably have a second phase for two years. Therefore, we will be in a position to become a hero with a mounted (dei) Paschi,” he said. Lovaglio said.