Major Italian Banking Scandal Unfolds
Milan prosecutors have uncovered what they describe as a sophisticated, multi-year strategy by prominent Italian investors to seize control of investment bank Mediobanca SpA and strengthen their influence over Assicurazioni Generali SpA, Italy's largest insurance company. The investigation documents reveal alleged coordinated actions involving Banca Monte dei Paschi di Siena SpA CEO Luigi Lovaglio and two powerful Italian investors.
The Key Players and Their Alleged Strategy
According to the 35-page probe document obtained by Bloomberg, billionaire Francesco Gaetano Caltagirone and Delfin Sarl Chairman Francesco Milleri allegedly orchestrated a complex plan to take control of Milan-based Mediobanca. Both investors hold significant stakes in both Mediobanca and Generali, making them key power brokers in Italy's financial landscape.
Prosecutors claim the strategy spanned several years, with a crucial turning point occurring in November 2024 when Italy's Treasury sold a 15% stake in Monte Paschi through an accelerated bookbuilding process. The documents allege this sale was structured to favor buyers aligned with the Mediobanca takeover plan, specifically Caltagirone and Delfin.
The Takeover Mechanics and Alleged Violations
The investigation reveals that Monte Paschi completed a €17 billion ($19.7 billion) acquisition of Mediobanca in September, creating Italy's third-largest lender by assets in a government-backed deal. Prosecutors allege this transaction was executed through coordinated behavior that violated Italian market rules and potentially influenced Mediobanca's share price.
A critical aspect of the alleged scheme involved concealed coordination that allowed participants to avoid pooling their stakes and bypass the requirement to launch a costly mandatory cash takeover bid. This occurred when their combined stake surpassed the 25% threshold in Mediobanca, according to the court documents.
Stakeholder Responses and Ongoing Investigation
All parties involved have denied any wrongdoing. Monte Paschi stated that the bank "is confident it can provide all the necessary information to clarify the correctness of its actions." Similarly, Delfin maintained its board "always acted in full compliance with market rules and laws," while the Caltagirone Group asserted its representatives "consistently acted in accordance with the rules governing the market."
Notably, Prime Minister Giorgia Meloni's government and the Finance Ministry in Rome are not under investigation, and none of the individuals or companies have been formally charged with wrongdoing at this stage.
The Complex Web of Corporate Influence
The investigation traces the origins of the alleged project back almost a decade. Delfin and the Caltagirone group have been significant shareholders since at least 2016, and prosecutors claim they pursued control through parallel and coordinated investments starting in 2019.
The overlapping stakes created a dense network of influence connecting Italy's largest insurer, its main shareholder Mediobanca, and Monte Paschi - the vehicle used in the takeover. According to Generali's website, Mediobanca remains the largest shareholder in Generali with a 13.2% stake, while Delfin controls 10.1% and Caltagirone holds 6.3%.
Investigators allege the two investor camps gradually converged, with their stakes in Generali and Mediobanca rising in lockstep and their voting behavior becoming increasingly aligned over time.
