Banco BPM (AO) | Reduce | Proposal of discussion with BMPS overtaken by Intesa Sanpaolo

Research evidence excerpt

Banco BPM (AO) | Reduce | Proposal of discussion with BMPS overtaken by Intesa Sanpaolo

News comment

Release date: 08 June 2026

Luigi Tramontana

Equity Research Analyst

+39 02 85 50 72 19

ltramontana@keplercheuvreux.com

ReduceBanco BPM

Italy | Banks & Asset Managers Beta Profile: MCap: EUR20.0bn

Target Price: EUR12.20 Bloomberg: BAMI IM Reuters: BAMI.MI

Current Price: EUR13.21 Free float 70.7%

Up/downside: -7.6% Avg. daily volume (EURm) 135.0

YTD abs performance 1.5% Market data: 05 June 2026

52-week high/low (EUR) 13.48/9.63

Proposal of discussion with BMPS overtaken by Intesa Sanpaolo

Key points:

Banco BPM's Board unanimously resolved over the weekend to open a dialogue with Banca MPS for a merger of equals.

The proposal was overtaken by the full-blown acquisition offer announced this morning by Intesa Sanpaolo.

We think it will be difficult for Banco BPM to counter Intesa Sanpaolo's offer and reiterate our Reduce recommendation on the

stock..

Banco BPM's Board unanimously resolved over the weekend to send a communication to Banca MPS, through which Banco BPM

expressed its interest in initiating a dialogue aimed at discussing and agreeing upon a potential combination between the two

banking institutions. The transaction, structured in line with the typical features of a merger of equals, would enable the creation

of a new banking and financial Group, capable of competing — in terms of size, product excellence and potential economies of

scale — with the main domestic and European banking and financial operators.

The eventual transaction would target significant run-rate synergies exceeding EUR1.1bn (pre-tax), including over EUR650m of

cost synergies and over EUR 450mof revenue synergies, in turn generated by approximately EUR250m of higher revenues across