ECB clears Monte dei Paschi bid for Mediobanca

Brussels – The European Central Bank says yes to Monte dei Paschi acquiring a part of Mediobanca. After the necessary analysis, the ECB gave its approval. It was the Siena-based bank to announce it, specifying that the authorization to buy a stake in Mediobanca concerns “a direct stake in Mediobanca whose value exceeds 10 percent of the Group’s consolidated own funds and in the relevant indirect shareholdings.”

However, there is full authorization for MPS with no constraints on the acceptance threshold to the offer, which could also stop below 50 percent, to become the group’s reference shareholder. The possibility has been granted but, at the moment, it is not guaranteed, so much so that in case of a shareholding of less than 50 percent, Monte dei Paschi will have to present within three months a report on the possibility of exercising de facto control over Mediobanca or, as an alternative, a report on its strategy regarding the shareholding in the absence of effective control.

Monte dei Paschi will have six months to prepare the management and operational plan, which will be submitted to the ECB. The strategy will have to contain information on capital requirements and impacts, IT security, adverse scenarios, mitigation of possible risks, and the internal organization of the new group in light of the acquisition of the Mediobanca stake. For MPS, this is a new life after its liquidity crisis in 2017 and the agreed restructuring in the same year between the government and the European Commission. 

The merger, however, may not end there. Gaetano Pedullà, an MEP from the 5 Star Movement, submitted a parliamentary question, even before the announcement of the green light from the ECB, to denounce alleged irregularities. In his opinion, “the sale procedure reserved for institutional investors of around 16 percent of the capital of Banca Monte dei Paschi di Siena was tainted by anomalous and serious conflicts of interest.” Specifically, the 5SM MEP said the Minister of the Economy “appointed Banca Akros, part of the Banco Bpm Group, to handle the sale, which divided the stake up between four entities: Caltagirone, Delfin, Banco Bpm, and Anima Sgr, controlled by Banco Bpm.” Essentially, “to the buyers’ benefit, the shares were sold at below market rate, going against standard practice of selling at a premium.”