Moody's lowers Mediobanca's outlook

Moody's has confirmed Mediobanca's ratings but changed the outlook from stable to negative due to "the downward pressure on Mediobanca's creditworthiness that could derive from the combination with a weaker group such as MPS", amid the Tuscan lender's takeover bid, CE Report quotes ANSA.

Mediobanca has rejected the 13-billion-euro takeover bid launched by domestic rival Monte dei Paschi (MPS) saying it was strongly destructive of value.

In a surprise move, the bailed-out Monte dei Paschi di Siena, the world's oldest bank, launched last Friday a 13.3 billion euro all-share buyout bid for premier merchant bank Mediobanca, offering 23 of its own shares for every 10 Mediobanca shares - a 5% premium on the previous night's closing price.

In a note issued announcing the bid, MPS said the union with Mediobanca would create "a new national champion in the Italian banking sector, which ranks third in key segments with a strong combination of products and services, characterized by a highly diversified and resilient business mix, with relevant industrial synergies".