Investing.com -- Intesa Sanpaolo acquired a 3% stake in Generali to prevent the insurer from building a defensive position in Italy’s largest bank, Chief Executive Carlo Messina told analysts on Monday.
The bank launched a bid for Monte dei Paschi on Monday and said it plans to maintain the Generali stake as an equity investment. Monte dei Paschi is the main investor in Generali.
In 2017, Intesa had explored purchasing all of Generali. After news of the potential deal leaked to the press, Generali responded by acquiring a stake in the bank.
Italian regulations on cross-shareholdings freeze voting rights for companies that purchase stakes in each other after an initial investment.
"You can make a mistake," Messina said. "What you cannot do is repeat it."
The chief executive expressed confidence in reaching the targeted acceptance threshold for the Monte dei Paschi bid. He noted that Intesa maintains good relationships with key Monte dei Paschi investors Delfin and Caltagirone.
Messina described the bank’s approach as friendly toward Monte dei Paschi investors and said he is convinced Intesa will bring all main shareholders on board.
The bank purchased the 3% Generali stake to avoid repeating past errors, Messina said. He noted that when Intesa previously targeted Generali, the insurer bought a stake in the bank as a defensive measure.
Messina said Intesa does not want to interfere with Generali’s management.
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