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Italian Finance Probe: Monte Paschi Scheme Unveiled
30 Nov
Summary
- Prosecutors allege coordinated scheme to control Mediobanca and Generali.
- Monte Paschi's takeover of Mediobanca faces market manipulation probe.
- Italian government's sale of Monte Paschi stake questioned for transparency.
Milan prosecutors are investigating a potential multiyear strategy by major investors Francesco Gaetano Caltagirone and Francesco Milleri of Delfin Sarl. They are accused of coordinating with Banca Monte dei Paschi di Siena CEO Luigi Lovaglio to gain control of Mediobanca, with the ultimate aim of influencing Assicurazioni Generali.
The alleged scheme involved coordinated actions and a lack of transparency, particularly concerning the Italian government's sale of a stake in Monte Paschi last year. This sale is described by prosecutors as orchestrated and anomalous, favoring aligned buyers for the Mediobanca takeover.
The investigation centers on market manipulation and obstruction of regulators, stemming from Monte Paschi's €17 billion acquisition of Mediobanca. While no charges have been filed, prosecutors allege the participants concealed their coordination to avoid a mandatory takeover bid, breaching market rules.
