Italy’s economy minister Giancarlo Giorgetti has signalled the Italian government will take a neutral approach to the acquisition of Monte dei Paschi di Siena (MPS), stating that it will support the highest bid made for the embattled ban.

The Italian treasury holds a 5 per cent stake in MPS and is seeking to reduce this figure.
"We have to get out of (Monte dei Paschi) and figure out who offers us the most, that's how it works," Giorgetti said on Wednesday, according to reporting by Reuters.

This means that the Italian government will not weigh in on the takeover, although it has the legal powers to do so.

MPS is the world’s oldest bank, first founded in 1472 and in operation in its current form since 1624. In addition to its approximately two million customers, the bank has a 13.32 per cent stake in Italy’s largest insurer, Generali.

On 8 June, Intesa Sanpaolo launched a €30.6 billion offer to take over MPS. It followed an expression of interest in acquiring MPS by Banco BPM, the third-largest bank in Italy. The latter declined to formally and publicly disclose an offer.

As 20 per cent of Banco BPM is owned by the French bank Crédit Agricole, the Italian government could register opposition to its proposed deal, as it would indirectly put part of Generali in non-Italian hands according to a report by the FT.

Intesa is Italy’s largest bank, serving approximately 14 million customers in the region through over 2,600 branches. Reuters an unnamed government official who said that Intesa’s offer would include keeping Generali under domestic control.

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