Milan closes higher as banking consolidation reshapes Italian finance
The FTSE Mib index in Milan closed up 0.66% at 50,818 points, making it one of the stronger markets in Europe in a session shaped by a major banking takeover battle. Madrid led the continent with a 1.1% gain, while Paris lagged, down 0.8% on Schneider Electric's acquisition announcement.
The spread between Italian 10-year BTPs and German Bunds held steady at 113 basis points by the close. The yield on the Italian benchmark bond settled at 4.59%. The euro continued its slide against the dollar, touching 1.12 dollars — its lowest level since May 2025.
Intesa Sanpaolo raises bid for MPS
Intesa Sanpaolo increased its offer for Monte dei Paschi di Siena by €0.25 per share, bringing the cash component to €1.25. The revised offer, announced on 3 October, values each share of the Siena-based bank at €10.34 — a premium of roughly 15%. Intesa shares rose 1.5% to €6.43.
Under the terms, Intesa would acquire the entire share capital of the Tuscan lender. Delfin, MPS's largest shareholder with an 18.9% stake, has committed to tender its shares.
The offer is conditioned on MPS shareholders rejecting an alternative merger plan at a meeting scheduled for 29 October.
Unipol and Bper gain from branch transfer
To address antitrust concerns, Intesa has agreed to sell a standalone banking entity to Unipol Assicurazioni. The package includes approximately 635 MPS branches, the historic MPS brand, and central operations. The transaction is valued at €3–3.5 billion.
Unipol shares surged 4% on the news, as investors assessed the insurance group's expansion into retail banking.
Bper Banca, which is expected to acquire branches from Unipol in a subsequent step, rose 2.3%.
Mediobanca loses ground on failed merger plan
Mediobanca shares fell 5.1% as the Intesa offer effectively ended its planned merger with the Siena bank.
Shareholders of both institutions are scheduled to vote on alternative strategies at assemblies on 29 October.
French market hit by Schneider Electric deal
Schneider Electric dropped 10% after announcing the acquisition of US industrial software company PTC for $22.6 billion. The transaction, funded through debt and a capital increase, raised concerns among investors about near-term dilution.
The fall weighed on the French CAC 40, making Paris the weakest major market in Europe on the day.
Energy and commodities
Oil prices declined around one percentage point, with WTI crude near $90 per barrel. Natural gas futures for November delivery on the Amsterdam exchange fell 2.1% to €73.1 per megawatt-hour.
Gold held steady at $4,166 per ounce.
Sector performance
Among other movers in Milan: Tenaris rose 5.2%, Fincantieri gained 4.6%, and Eni added 1%. Prysmian fell 1.45%, while Telecom Italia declined 2.3%.
Semiconductor stocks were weak across Europe, with Aixtron down 2.2% and Infineon off 1.9%.
Luxury names were mixed: Hermès lost 2.2% and Kering dropped 1.5%, while Brunello Cucinelli rose 0.6%.
In the smaller-cap segment, Trevi surged 5.8% after Webuild acquired an 18.9% stake at €5.165 per share — above the price of the public offer already on the table, meaning all tendering shareholders will receive the higher amount.
For residents of Italy: A stable spread and yields at current levels suggest borrowing costs for mortgages and business loans will remain elevated but predictable in the near term. The banking consolidation may reduce branch density in some areas while expanding digital services, with Unipol's entry into retail banking potentially increasing competition for deposits and loans.
