Lovaglio has long argued that breaking up the lender’s branch network would erode its core value. His latest move aligns with the preference of Prime Minister Giorgia Meloni, who has publicly advocated for keeping the institution intact. While the board has not yet formally reviewed these proposals, insiders suggest a meeting could be called shortly to evaluate the potential alliances.

The path to a deal remains complex. Banco BPM, Italy’s fourth-largest bank, recently abandoned its own pursuit of a merger with MPS after failing to gain traction and facing skepticism from its primary shareholder, Credit Agricole. Under Italian takeover regulations, any defensive maneuver involving a share swap would ultimately require approval from the bank’s shareholders.