The board of directors of Monte dei Paschi di Siena (MPS) will convene tomorrow to discuss an investigation on its CEO and two shareholders by Italian prosecutors, reported Reuters, citing sources familiar with the matter.
This investigation, launched last week by Milan Public Prosecutor, is into the bank’s CEO, Luigi Lovaglio and major shareholders, Caltagirone and Delfin.
Italian prosecutors are investigating allegations of market rigging and obstruction of supervisory activities related to MPS’s recent acquisition of Mediobanca.
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MPS, in a statement last week, said: “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.”
According to judicial documents reviewed by Reuters, Delfin and Caltagirone, with the help of Lovaglio, acted to gain control of Mediobanca.
In September this year, MPS acquired a controlling stake in Mediobanca through a €16bn ($18.6bn) share and cash offer.
Delfin and Caltagirone held significant stakes in both Mediobanca and Generali, Italy’s leading insurer. Mediobanca is also a major investor in Generali.
In recent years, both shareholders have experienced disagreements with the chief executives of Mediobanca and Generali, said the Reuters report.
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.
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.
The move by the government’s stake sale was part of an effort to establish a more stable Italian shareholder base for the bailed-out lender.
All parties under investigation have reportedly denied any wrongdoing.
The prosecutors extended the inquiry until the completion of the takeover to avoid any influence on the outcome of the deal, the report said, citing judicial sources.
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