Treasury Nominates New Board of Directors for MPS
Monte dei Paschi is set to appoint a new board of directors on April 20, with the Treasury, which owns 64% of MPS after a 2017 bailout, submitting its list of nominees for the board on Saturday.
Nicola Maione Slated for Chairman Role at MPS
The Treasury also plans to appoint Nicola Maione, a lawyer, and MPS director since 2017, as chairman. Maione has previously chaired the board of state-controlled air traffic controller Enav.
Luigi Lovaglio's Impressive Banking Career
Lovaglio boasts a 40-year career in banking, having climbed the ranks at UniCredit and eventually leading the group's former Polish unit, Bank Pekao. He joined MPS just over a year ago, replacing the previous CEO.
Lovaglio's Successful Capital-Raising Efforts
Despite challenging market conditions, Lovaglio guided MPS through a crucial 2.5 billion euro ($2.7 billion) capital raising in November. A portion of these funds was used to facilitate staff exits agreed with unions, ultimately reducing operating costs.
Merger Plans to Solidify MPS' Turnaround
Lovaglio will now focus on finalizing a merger to secure MPS' revival and allow the state to fulfill European Union re-privatization commitments made during the bailout, according to an individual familiar with the situation.
Banking Supervisors Prefer Merger to Strengthen MPS
Banking supervisors continue to view a merger as the most effective way to bolster MPS' fragile profitability, as confirmed by a second source.
Italy Seeks More Time for MPS Stake Reduction
Following a failed attempt to sell MPS to UniCredit, Italy has requested additional time from the EU to reduce its stake in the bank. UniCredit is still considered a potential buyer, but the Treasury has also turned its attention to Banco BPM as a possible merger partner, as reported by Reuters sources.