Italy's economy ministry has strongly defended its actions regarding the placement of shares in the previously bailed-out Monte dei Paschi di Siena (MPS) bank, as two major investors now face scrutiny from Milan prosecutors. The ministry maintains it operated within regulatory boundaries throughout the process.
Ministry's Firm Stance on Share Placement
The Treasury official stated unequivocally that the ministry consistently acted in compliance with established rules and standard practices. This declaration comes amid growing tension surrounding the investigation into Italy's historic MPS bank, its chief executive, and its principal shareholders.
Judicial sources revealed to Reuters that Milan prosecutors are examining the Tuscan bank's acquisition of Mediobanca. The central question under investigation is whether the two key investors coordinated with the bank while deliberately keeping supervisory authorities and other investors uninformed about their actions.
Key Players and Their Responses
The investigation focuses on Italian business magnate Francesco Gaetano Caltagirone and holding company Delfin, both of whom have firmly denied any misconduct. They have expressed confidence that the ongoing probe will ultimately clear them of any wrongdoing.
Italy initiated the re-privatization process for MPS in November 2023, following the 2017 government bailout that left the state with a 68% ownership stake. This move aligned with commitments made to European Union authorities to reduce government holding in the bank.
The Final Share Placement and Its Aftermath
The conclusive share placement occurred in November 2024, successfully bringing Caltagirone and Delfin onboard as shareholders alongside mid-sized bank Banco BPM and fund manager Anima. This strategic placement was part of the Treasury's plan to establish a core group of more stable domestic shareholders for MPS.
According to judicial documents reviewed by Reuters, both Caltagirone and Delfin informed markets watchdog Consob that the ministry had approached them before the November 2024 sale. The document also revealed that the ministry assured Consob there had been no prior contacts with investors participating in that placement.
The initial share placements had attracted dozens of international investment funds, but the final placement marked a significant shift toward domestic stability. The November 2024 sale reduced the Treasury's stake in MPS to below 12%, with the subsequent Mediobanca deal further decreasing government ownership to under 5%.
As the investigation continues, all parties involved maintain their positions, with the ministry emphasizing procedural compliance and the investors asserting their confidence in being exonerated.
