Bidding War Heats Up for the World's Oldest Bank

June 9, 2026 - 04:21

Monte dei Paschi di Siena, the Italian lender that traces its roots back to 1472, has become an unexpected prize in European banking. After years of struggling under bad loans and state bailouts, the bank is now the target of competing offers from major financial groups.

UniCredit, led by CEO Andrea Orcel, has made a preliminary approach to acquire the Tuscan bank. The move comes just weeks after Banco BPM, another Italian lender, launched its own bid. The sudden interest marks a dramatic turnaround for Monte dei Paschi, which was once seen as a symbol of Italy's banking troubles.

The Italian government, which still holds a roughly 39% stake in the bank after a 2017 rescue, has been looking for a way to privatize it. Both suitors see Monte dei Paschi as a way to expand their retail networks and gain market share in Italy's fragmented banking sector.

Analysts say the battle could reshape Italian banking. UniCredit is already the country's largest bank by assets, while Banco BPM is the third largest. A deal for Monte dei Paschi would give either buyer access to millions of customers in wealthy regions like Tuscany and Lombardy.

The government has not taken sides yet but wants a deal that protects jobs and preserves the bank's historic brand. Monte dei Paschi's headquarters in Siena, with its frescoed halls and Renaissance art, is a point of local pride.

Investors are watching closely. Shares in Monte dei Paschi have jumped since the bids emerged. Any final agreement will need regulatory approval from the European Central Bank and could take months to complete. For now, the world's oldest bank is suddenly the center of attention.