Mediobanca unveiled an updated strategic plan that pledges to return €4.9 billion ($5.74 billion) to investors through dividends and buybacks over the next three years, a move designed to make the Milan-based merchant bank a more expensive target for a hostile all-share offer from Banca Monte dei Paschi di Siena. The plan, extending to June 2028, forecasts net profit rising 45% to €1.9 billion and revenue exceeding €4.4 billion, implying average annual growth of 6%. The payout represents 100% of ordinary earnings, with about €4.5 billion distributed in cash and the remainder via buybacks. Mediobanca also intends to sell up to €750 million of Additional Tier 1 bonds to bolster capital. Chief Executive Officer Alberto Nagel said the MPS proposal "lacks industrial and financial rationale" and carries significant execution risks. MPS received European Central Bank clearance this week to launch its bid in July. Mediobanca argues that combining with the smaller Tuscan lender would dilute its earnings and raise capital requirements. Instead, Mediobanca is pressing ahead with a previously announced plan to acquire private-banking specialist Banca Generali, with a shareholder vote now scheduled for 25 September. Nagel told analysts the deal would create a "very powerful" wealth-management platform and further support the stand-alone growth path outlined in the new plan.