MPS Takes Over Mediobanca in Major Italian Deal
Milan, Nov 27 – Monte dei Paschi di Siena (MPS) has made headlines with its recent acquisition of Mediobanca, marking one of Italy’s most significant mergers and acquisitions to date. The deal, valued at around €16 billion ($19 billion), gained considerable backing from local government and its two largest shareholders, who hold substantial stakes in both institutions.
However, amidst the excitement, there’s turmoil. The primary shareholders, Francesco Gaetano Caltagirone and Delfin, are reportedly under investigation in relation to the acquisition. Judges in Milan disclosed the investigation tied to the Mediobanca takeover during a search of the Bank of Tuscany, where MPS’s CEO, Luigi Lovaglio, is also facing scrutiny. MPS confirmed it’s cooperating with the investigation and is ensuring that all necessary information is shared to clarify its actions.
The merger was seen as a strong step in reshaping the financial landscape in Italy, but it’s causing ripples of doubt. Allegations have emerged that market regulators, including Consob and the European Central Bank, weren’t adequately informed about the coordinated efforts from MPS and its main investors concerning this deal. Authorities are looking into potential market manipulation, leading to a dip in MPS’s stock prices, which dropped by 4.6% following the news.
Both Caltagirone and Delfin, who became MPS shareholders following a government stake sale in 2024, are confident that they acted properly throughout this process. They have publicly stated that they believe the investigation will vindicate them. Yet, the uncertainty remains, with further investigations ongoing.
Background of the Investigation
Lovaglio, along with the major investors, has been under the spotlight since June, only to be named publicly after recent investigative actions. The team of prosecutors handling the case appears to be thorough, as MPS offices were recently searched for records. Investigations won’t end soon, especially given the complexities involved in such financial dealings.
After the Italian Treasury’s sale of its remaining stake, which had once been a massive 68%, MPS’s capital structure has certainly evolved and continues to reflect a landscape in flux. Adjustments to the shareholding have, inappropriately or otherwise, propelled MPS into bold decisions like the one seen with Mediobanca.
As events unfold, stakeholders will be watching closely, as the implications of these actions extend beyond just financial performances—shaping the very fabric of Italy’s banking industry.
