Investigation into Monte dei Paschi di Siena CEO and Shareholders
In recent news, the board of directors of Monte dei Paschi di Siena (MPS), a prominent Italian bank, is set to convene to discuss an ongoing investigation regarding its CEO, Luigi Lovaglio, and two of its major shareholders, Caltagirone and Delfin. This investigation was initiated by Italian prosecutors and is driven by allegations of market rigging and obstruction of supervisory activities related to MPS’s recent acquisition of Mediobanca, according to Reuters.
Details on the MPS-Mediobanca Acquisition
Earlier this year in September, MPS acquired a controlling stake in Mediobanca, a leading Italian investment bank, through a €16bn ($18.6bn) share and cash offer. Shareholders Delfin and Caltagirone held significant stakes in both Mediobanca and Generali, Italy’s leading insurer, with Mediobanca also being a major investor in Generali. However, both shareholders have had disagreements with the chief executives of Mediobanca and Generali in recent years.
According to the prosecutors’ search and seizure warrant, Delfin and Caltagirone intended to take control of both Mediobanca and Generali, using MPS as a vehicle. This intention became possible when both Delfin and Caltagirone became shareholders in MPS in November last year, following the Italian government’s sale of a 15% stake in the bank.
MPS Responds to Allegations
In response to these allegations, MPS stated: “The Bank is confident it can provide all the necessary information to clarify the correctness of its actions and expresses its full trust in the competent authorities, with whom it confirms its full cooperation.” The bank demonstrates a high level of confidence in its actions and expresses trust in the authorities handling the investigation. As of now, all parties under investigation have reportedly denied any wrongdoing.
Implications of the Investigation
The Italian government’s sale of a 15% stake in MPS to Delfin and Caltagirone was a strategic move aimed at establishing a more stable Italian shareholder base for the bailed-out lender. The acquisition of the controlling stake in Mediobanca by MPS has brought these allegations to light. While the investigation continues, the prosecutors have extended the inquiry until the completion of the takeover to avoid any influence on the outcome of the deal, according to judicial sources.
As these events unfold, the impact on MPS, Mediobanca, and their respective shareholders remains to be seen. This situation serves as a reminder of the importance of transparency and regulatory compliance in the banking industry.
More details on the story can be found Here.
