Mediobanca CEO Says Paschi Bid Would Lead to Earnings Dilution

Mediobanca SpA Chief Executive Officer Alberto Nagel rebuffed Banca Monte dei Paschi di Siena SpA’s takeover bid saying it would dilute earnings per share and dividends of the combined entity.

A combination with Monte Paschi would result in “a transaction that is not positive for us, not positive for Monte Paschi shareholders,” Nagel said at the Morgan Stanley European Financials Conference in London on Tuesday, flagging an estimated “double-digit” impact on EPS.

The deal would create complexity, “dis-synergies” and has no premium, Nagel said.

Monte Paschi has made an unsolicited all-share offer to acquire Mediobanca, valuing the competitor at ...