Italys Treasury defends its actions as bailed-out Monte dei Paschi faces judicial probe

MILAN, Nov 29 (Reuters) – Italy’s Economy Ministry said on Saturday that it had acted correctly in transferring shares in rescued bank Monte dei Paschi di Siena (MPS) to two key investors who are now at the center of Milan prosecutors’ investigation.

“The Department has always acted in accordance with the rules and standard practices,” a Treasury official said.

Italy’s MPS, its chief executive and its two largest shareholders are facing an investigation in Milan over the Tuscan bank’s takeover of Mediobanca, judicial sources told Reuters on Thursday.

Prosecutors are investigating whether the two investors and the bank acted in coordination while keeping supervisory authorities and investors in the dark.

MPS and two shareholders, Italian businessman Francesco Gaetano Caltagirone and holding company Delfin, denied any wrongdoing and expressed confidence that the investigation would exonerate them.

After bailing out MPS in 2017, Italy began privatizing the bank again in November 2023, placing blocks of shares on the market to cut its 68% stake, in line with commitments reached with European Union officials.

The final placement took place in November 2024 and included mid-market bank Banco BPM and fund manager Anima, as well as shareholders Caltagirone and Delfin.

According to a judicial document reviewed by Reuters on Saturday, Caltagirone and Delfin told market watchdog Consob that they had been tapped by the ministry before that sale about the Treasury’s plan to create a core of more stable domestic shareholders at MPS.

The first two share sales brought in dozens of international investment funds as shareholders.

The forensic document shows the ministry told Consob there had been no previous contact with investors involved in the November 2024 placement.

This sale reduced the Treasury’s share in MPS to below 12%. The Mediobanca agreement reduced this rate to below 5%. (Reporting by Giuseppe Fonte and Emilio Parodi; Writing by Valentina Za; Editing by Andrew Heavens)