Italy is open to selling its remaining interest in Monte dei Paschi di Siena (MPS), though there are no immediate plans for such a move, Prime Minister Giorgia Meloni has indicated.
In a traditional New Year’s press conference, Meloni said: “Today we have less than 5%. I don’t rule out selling it, but there’s no rush”, reported Reuters.
Meloni’s statement follows MPS’s acquisition last year of a significant majority stake in Mediobanca.
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Italy reduced its MPS holding from 68%, which acquired during the 2017 rescue, to 4.9%.
The reduction was achieved through a series of share placements carried out over the last two years and following the Mediobanca acquisition, according to Bloomberg.
The government initiated the privatisation of MPS in 2023 to satisfy European Union conditions.
The Ministry of Economy and Finance reduced its stake through three public offerings, raising about €2.7bn and bringing its holding down to roughly 12% before further dilution resulting from the Mediobanca deal, added Bloomberg.
According to Meloni, the government now holds little influence over MPS due to its minority stake.
She stated that any moves by MPS to become a competitor to major Italian banks such as UniCredit and Intesa Sanpaolo through mergers or acquisitions should be regarded as beneficial for competition, Reuters added.
In November, Reuters reported that the Italian government was aiming to further reduce its stake in Monte dei Paschi di Siena through a potential future merger, with particular attention on a longstanding objective to merge MPS with competitor Banco BPM.
Meloni said: “I think that (a third leading banking group) would be beneficial to our banking system as a whole, but the government does not have the authority or the means to do this.”
Meloni also addressed the ongoing investigation into MPS’s takeover of Mediobanca.
Prosecutors in Milan are examining whether CEO Luigi Lovaglio and investors Francesco Gaetano Caltagirone and Delfin Sarl Chairman Francesco Milleri coordinated actions without informing regulatory authorities and shareholders.
She said she is “not worried” about the inquiry and noted that prosecutors have stated there was “nothing illegitimate” in the government’s conduct regarding the stake sale.
The Italian Prime Minister further added: “I am not concerned about the ongoing investigation into MPS. Even the prosecutors have said that there is nothing illegal about the government’s actions.”
The finance ministry is not subject to any investigation related to these transactions, Bloomberg added.
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