Monte Paschi Plans to Replace Mediobanca CEO, Lovaglio Says
(Bloomberg) – Banca Monte Dei Paschi Di Siena Siena Chairman Luigi Lovaglio said he plans to change his counterpart in Mediobanca sa if he managed to seize the control of larger competitors.
Speaking in an interview with Bloomberg TV on Wednesday, Lovaglio said that he was trying to search for Mediobanca CEO Alberto Nagel, but he did not receive an answer.
Lovaglio said on Wednesday that “Nagel is not interested in the agreement” from London. “I think we should call a new CEO.”
Comments emphasize the tension between the two banks with the ongoing bid period. When Monte Paschi announced his plan in January, he stunned Italy, a brave move for a lent who is still in the process of returning to private property. Nagel rejected the offer and proposed to be seized in a way that was seen as the defense movement of Banca Georian Spa.
Lovaglio argued that a combination with Mediobanca would allow Monte Paschi to benefit from asset collection, private banking, investment banking and insurance. On Wednesday, he said that both banks would hold their brands after an agreement.
“There is a strong industrial and financial justification,” he said in the interview. “We reward our shareholders with 100% payment for the next 10 years, and we will also increase the capital € 500 million every year thanks to financial aids.”
Lovaglio said that Mediobanca investors will violate more than 66% of the stock capital during the proposal period that began on July 14th, but that the opponent could obtain “actual” control as little as 35%.
“The aim is to go over 66%,” he said.
Monte Paschi offers 25,33 new shares for every 10 in Mediobanca, and on Tuesday, it values approximately € 15.1 billion to the target of approximately € 14.6 billion ($ 17 billion) below Mediobanca’s market value. Valuation indicates that investors expect the bid to be increased. The proposal carried about 5% premium when introduced.
The agreement is one of the currently negotiated and a series of overlapping merger and purchasing offers that can reshape financing in the European Union’s third largest economy. The transaction is supported by the government in Rome, which still has a shares in Monte Paschi and wants to establish a third largest banking group around Toskan lending.
Monte Paschi’s plan also has the support of the billionaire Del Vecchio family, the biggest investors of Mediobanca, and Francesco Gaetano Caltagirone of construction king. Both shares in Monte Paschi and Assicurazioni General Spa.
Lovaglio said, “supportive from the beginning,” Both investors said.
Mediobanca said on Friday that the financial participation in many companies has been the wrong alignment of these shareholders’ interests in relation to the rest of the shareholder structure ”.
Monte Paschi, which is still considered the oldest bank in the world, has recently emerged from a deep restructuring. The Bank was rescued after a bad -timed transfer just before the financial crisis and then expropriated.
Under the direction of Lovaglio, Monte Paschi, who took over in 2022, allowed the lender to allow the debtor to pay dividends and sell his share of the government after a 13 -year hiatus.
(Updates with comments from the interview that started in the sixth paragraph.)
There are more stories like this Bloomberg.com
