Influential proxy advisory firm ISS has rejected a strategic plan proposed by Banca Monte dei Paschi di Siena (MPS) CEO Luigi Lovaglio. The plan was intended to defend against a tender offer from Intesa Sanpaolo and included ambitious bids for Banco BPM and Banca Generali.
ISS reportedly deemed the proposed acquisitions too risky, citing a lack of due diligence, uncertainty over the final prices and the challenges of integrating banking groups with different cultures.
The decision removes a potential, though unsolicited, suitor for Banco BPM from the landscape of Italian bank consolidation.