彭博称Monte Paschi与Banco BPM顾问讨论含现金成分的对等合并方案

Advisers for Banca Monte dei Paschi di Siena SpA and Banco BPM SpA’s are in talks over a possible merger of equals, structured as a mix of shares and cash, as an alternative to Intesa Sanpaolo SpA’s €35 billion ($40 billion) bid for Monte Paschi, according to people familiar with the matter.

They’re working on a structure that would leave shareholders with ownership broadly reflecting the two banks’ current valuations, and are seeking ways to add a cash component for Monte Paschi investors, according to the people. Monte Paschi had a market value of €35.8 billion on Monday and Banco BPM was worth €24 billion.

Given the complexity of such a transaction, it is likely to take some weeks before any proposal could be finalized, the people said, asking to not be identified as the talks aren’t public.

A merger could help preserve Monte Paschi as an independent institution without breaking it up, while also creating a third large banking group to compete with Italy’s two dominant lenders, Intesa and UniCredit SpA, according to the people. Intesa has vowed to sell a large part of Monte Paschi’s branch network should its offer be successful.

Read More:Intesa Makes €30.6 Billion Paschi Bid in New Italy Deal Wave

Any deal would likely include the sale of some branches from the combined entity to address antitrust concerns and help facilitate the transaction, the people said.

Representatives for Monte Paschi and Banco BPM declined comment.

Monte Paschi, based in Siena and considered the world’s oldest bank still in operation, earlier this month cast doubt on the Intesa bid, saying it’s too low, fails to offer an adequate control premium and carries significant execution and regulatory uncertainties. At the same time, Monte Paschi’s board said Banco BPM’s merger proposal deserved a “complete and rigorous assessment” because it was based on preserving the group’s integrity rather than breaking it up.

Read More: Paschi Casts Doubts On Intesa Bid, Urges Studying BPM Plan

Intesa’s proposal, announced in June, would combine Italy’s largest lender with Monte Paschi, while transferring a substantial portion of the target’s branch network to BPER Banca SpA to address competition concerns. The lender is offering 1.6 of its own shares and €1 in cash for each Monte Paschi share.

Banco BPM had proposed a merger of equals a day before Intesa published its proposal, though its offer didn’t give a price or many details. Any deal involving Banco BPM would also need to take account the views of its largest shareholder, French lender Credit Agricole SA.

Credit Agricole, which has commercial agreements with Banco BPM, wants to further expand in Italy, its largest market outside France. Last month it raised its stake in Banco BPM to close to 30%, strengthening its negotiating position.