Latest news with #MonteDeiPaschi
Reuters
3 days ago
- Business
- Reuters
Four former Monte Paschi executives to stand trial in bad loans case
MILAN, June 6 (Reuters) - An Italian judge has ordered four former executives of bank Monte dei Paschi di Siena ( opens new tab to stand trial for alleged false accounting in 2015 and the first half of 2016 over the classification of impaired loans, judicial and legal sources said on Friday. Former presidents Alessandro Profumo and Massimo Tononi, former CEO Fabrizio Viola, and ex-accounting manager Arturo Betunio are set to face charges of false accounting and market manipulation at a Milan court on Oct. 16. Lawyers for the four did not immediately respond to requests for comment, but all have consistently denied wrongdoing. The case marks the latest development in a series of legal proceedings linked to the troubled Tuscan lender's 2017 rescue. Milan prosecutors have alleged that false accounting from 2014 to 2017 was used to obscure the bank's insolvency, which would have blocked its state bailout, according to judicial documents. Milan judge Fiammetta Modica on Friday cleared five other MPS executives, including former presidents Alessandro Falciai and Stefania Bariatti, and former CEO Marco Morelli, of all charges related to the other years under investigations. Prosecutors had previously requested no proceedings for these periods. The alleged offence relates to the misclassification of loans as "performing" rather than "impaired". Italy pumped 5.4 billion euros ($6.15 billion) into MPS in 2017 under a so-called precautionary recapitalisation. Under European Union rules, this applies only to viable companies, so that public money is not used to cover any actual or expected losses. The European Central Bank conducted a health check on MPS at the time to unlock state aid in compliance with EU competition rules. Italy's Treasury negotiated the bailout terms with the European Commission and eventually committed to reducing its stake in the bank, which after the bailout stood at 68%. Under CEO Luigi Lovaglio, the bank has restructured, benefiting from higher interest rates and lower costs. Lovaglio raised 2.5 billion euros in late 2022 to fund redundancies. In October 2023 Italy's Supreme Court confirmed an appeals court's ruling that overturned a previous verdict and acquitted all defendants of charges related to derivatives deals that prosecutors alleged had helped MPS hide losses. In December 2023, MPS's former CEO and chairman were also acquitted on appeal, after serving six years in prison in a related case. The verdict was upheld by Italy's Supreme Court in February 2025. ($1 = 0.8776 euros)
Reuters
4 days ago
- Business
- Reuters
MPS CEO upbeat on Mediobanca bid take-up, but crossing 50% enough for tax benefits
MILAN, June 5 (Reuters) - Monte dei Paschi ( opens new tab CEO Luigi Lovaglio on Thursday expressed confidence on a high take-up for his bank's bid for Mediobanca ( opens new tab, although a level of 50% plus one share is sufficient to unlock tax benefits and reward investors. Speaking to Sky TG 24, Lovaglio said he saw no reason why banking supervisors should subject the Monte dei Paschi bid to minimum take-up thresholds. "It hasn't done so with any of the bids, so I don't think it's an issue. I'm confident we can launch the offer in early July and reach a good take-up," he said. By securing half of Mediobanca's capital plus one share, MPS can consolidate their financial accounts and unlock 1.2 billion euros ($1.4 billion) in tax credits, boosting profits and increasing shareholder remuneration. "We're determined to reach the take-up threshold [of 66.67%] we're currently targeting," he added. ($1 = 0.8750 euros)
Reuters
4 days ago
- Business
- Reuters
Glass Lewis recommends Mediobanca investors to vote in favour of Banca Generali bid
MILAN, June 5 (Reuters) - Proxy adviser Glass Lewis said it had recommended Mediobanca's ( opens new tab investors vote in favour of the merchant bank's bid for Banca Generali ( opens new tab at a general meeting on June 16. "The proposed offer represents a substantial opportunity for Mediobanca shareholders", it said in a report published on Thursday. Mediobanca proposed buying Banca Generali in April as it seeks to stave off a buyout bid from Monte dei Paschi di Siena (MPS) ( opens new tab. Due to the MPS bid and Italian corporate takeover rules, Mediobanca must first seek shareholders' approval to pursue the Banca Generali deal and has called a meeting for June 16 to vote on the plan.
Reuters
5 days ago
- Business
- Reuters
Monte dei Paschi's bid for Mediobanca lacks industrial logic, Generali CEO says
ROME, June 4 (Reuters) - Monte dei Paschi di Siena's (MPS) ( opens new tab bid for Mediobanca ( opens new tab makes no industrial sense, the chief executive of insurer Generali ( opens new tab said in an interview on Wednesday, adding that the bid was aimed at taking charge of his company. "The industrial logic is not clear, many have expressed doubts" (about the offer), Generali CEO Philippe Donnet told daily la Repubblica. "It is clear" that Monte dei Paschi's takeover is geared towards taking control of Generali, Donnet said, given that some shareholders own significant stakes in both the Italian banks and in the insurer. "I see this as a very negative scenario, it would be dangerous for a healthy management of the group. The company need to stay Italian, independent and international," he added. Construction magnate Francesco Gaetano Caltagirone and investment company Delfin recently acquired nearly 20% of Monte dei Paschi. They together hold 27% of Mediobanca and 17% of Generali.
Reuters
6 days ago
- Business
- Reuters
Mediobanca investor Caltagirone urges bank to delay shareholder vote on Banca Generali
MILANO, June 3 (Reuters) - Francesco Gaetano Caltagirone, one of the biggest investors in Mediobanca ( opens new tab, has called on the Italian bank's board to delay a shareholder vote scheduled for June 16 on the proposed acquisition of private bank Banca Generali ( opens new tab. Mediobanca has proposed buying Banca Generali in an effort to thwart a takeover offer by Monte dei Paschi di Siena (MPS) ( opens new tab, a bailed-out lender in which Caltagirone is also a shareholder. Due to the MPS bid, Mediobanca must first seek shareholder approval to pursue the deal and has called a meeting on June 16 to vote on the project.
