Intesa Sanpaolo May Raise Takeover Offer for Mps
Listen to the story
Intesa Sanpaolo, one of Italy's largest banks, says it could raise its takeover bid for rival bank Mps.
A takeover bid is an offer made by one company to buy another company.
The bank is ready to increase its offer by 25 cents per share, according to reports.
A share is a small unit of ownership in a company, and people who own shares are called shareholders.
However, Intesa Sanpaolo will only raise the offer under one condition. Mps shareholders must first reject a plan proposed by Mps's chief executive, Luigi Lovaglio.
The chief executive is the person in charge of running a company.
If the higher offer goes ahead, the total deal could be worth around 3.8 billion euros. Part of this amount would be paid in cash, meaning money rather than shares.
This type of deal, where a buyer offers both cash and shares, is called a mixed offer in financial news.
Intesa Sanpaolo has reportedly described the upcoming shareholder vote as a kind of referendum, a vote in which people simply choose yes or no on one question.
To discuss these plans, Intesa Sanpaolo called an extraordinary board meeting, a special meeting held outside the normal schedule to deal with an urgent matter.
The situation shows ongoing tension between the two Italian banks over the future of Mps, one of the country's oldest banking institutions.
It remains to be seen how Mps shareholders will vote and whether Intesa Sanpaolo will follow through with its higher offer.
Vocabulary10 words
- takeover bid
- an offer to buy a company
- share
- a small unit of ownership in a company
- shareholders
- people who own shares in a company
- chief executive
- the top boss who runs a company
- cash
- real money, not shares
- mixed offer
- a deal paid partly in cash and partly in shares
- referendum
- a vote where people choose yes or no
- extraordinary board meeting
- a special, urgent meeting of company leaders
- deal
- an agreement between two sides
- rival
- a company competing with another
📚 Ready to use these words in a real conversation?
Practice live with a real tutor on Preply.
Quiz
Answer key
1. 25 cents 2. If shareholders reject Lovaglio's plan 3. 3.8 billion euros
✅ Nice work on the quiz!
Keep the momentum going — book a live English lesson with a Preply tutor.
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Intesa Sanpaolo, one of Italy's largest banks, says it could raise its _____ for rival bank Mps.
The bank is ready to increase its offer by 25 cents per _____, according to reports.
However, Intesa Sanpaolo will only raise the offer under one condition: Mps shareholders must first _____ a plan proposed by Mps's chief executive, Luigi Lovaglio.
If the higher offer goes ahead, the total deal could be worth around 3.8 _____ euros.
Part of this amount would be paid in _____, meaning money rather than shares.
Intesa Sanpaolo has reportedly described the upcoming shareholder vote as a kind of _____.
To discuss these plans, Intesa Sanpaolo called an _____, a special meeting held outside the normal schedule.
The situation shows ongoing tension between the two Italian banks over the future of _____.
Discussion questions
- Why do you think Intesa Sanpaolo is waiting for the shareholder vote before raising its offer?
- What might happen to Mps shareholders if they reject Lovaglio's plan?
- Why do companies sometimes offer part cash and part shares in a takeover?
- Do you think bank mergers like this one benefit customers? Why or why not?
🎓 Enjoyed this story?
Turn today's reading into real speaking practice with a live Preply tutor.
