Banca Monte dei Paschi di Siena under Investigation over Mediobanca Takeover
In an unexpected development in Italy’s banking sector, Italian prosecutors have initiated an investigation into the €13.5bn takeover of Mediobanca by Banca Monte dei Paschi di Siena (MPS). The probe is focusing on allegations of market manipulation and obstruction of supervisory functions. The key figures under scrutiny are Luigi Lovaglio, the chief executive of MPS, and top shareholders Delfin and Francesco Gaetano Caltagirone.
Details of the Investigation
MPS confirmed that it had received a search warrant and that Luigi Lovaglio, its chief executive, has been served a notice of investigation by Milan’s prosecutor’s office in his capacity as the CEO. The investigation centres around the takeover of Mediobanca, a deal which was launched in January and completed in September.
Financial Times, citing sources familiar with the matter, reported that Milanese prosecutors are investigating MPS, Delfin, and Caltagirone for alleged market manipulation and obstruction of regulatory functions. Both Delfin and Caltagirone were prominent shareholders in Mediobanca.
Response from the Parties Involved
In response to the allegations, Delfin has stated that its members were not involved in the alleged activities. They maintain that they have consistently acted in accordance with market rules and relevant regulations. Caltagirone, on the other hand, has yet to provide a response to the allegations.
MPS has expressed confidence in its ability to provide all the necessary information to demonstrate the appropriateness of its actions. The bank affirms its full cooperation with the relevant authorities and trust in their process.
Background and Implications of the Takeover
According to those familiar with the matter, it is suspected that the takeover may have been pre-arranged between MPS and the billionaire shareholders of both banks. These investors have also been the subject of an ongoing investigation for several months.
The takeover, in which Italy was the single largest shareholder, surprised markets earlier this year. This was particularly unexpected as it followed Delfin and Caltagirone acquiring stakes in MPS two months after their long-term investments in Mediobanca and insurer Generali. Mediobanca is the largest investor in Generali, holding a 13% stake.
Conclusion
The impact of this investigation on the Italian banking sector and the parties involved remains to be seen. The outcome could have significant implications for market rules and regulations in Italy. It highlights the importance of transparency and adherence to regulatory norms in business dealings.
For more details, visit the source link here.
