Milan Mayor Sides with Mediobanca in MPS Takeover Battle
In a dramatic turn of events, Milan Mayor Giuseppe Sala has publicly supported Mediobanca in its ongoing takeover battle with state-backed Monte dei Paschi di Siena (MPS). Sala's endorsement aligns the city's financial interests with Mediobanca, a renowned financial institution.
MPS's €13.3 billion all-share bid for Mediobanca has sparked controversy within Italy's finance sector. The takeover attempt pits a troubled lender against a highly respected name in banking.
Sala, a former corporate executive, raised concerns about the government's involvement in the deal, expressing skepticism about its strategic value. He suggested that the motivation may be political, with Rome (representing MPS) potentially seeking to exert control over Milan (symbolized by Mediobanca).
The takeover bid follows the Italian government's acquisition of shares in MPS from Delfin (controlled by the late Leonardo Del Vecchio) and Caltagirone, a construction magnate with ties to Prime Minister Giorgia Meloni. Delfin and Caltagirone hold significant stakes in Mediobanca and Generali, an insurer.
Sala highlighted the connection between Mediobanca and Generali, arguing that the bid could ultimately target both entities. Mediobanca's reliance on income from its stake in Generali has drawn criticism from Delfin and Caltagirone.
Despite opposing Sala politically, Economy Minister Giancarlo Giorgetti has also supported the MPS bid, suggesting that it could strengthen Italy's banking system. Giorgetti's support challenges accusations of a regional divide, as the League party he represents has traditionally had strong ties in northern Italy.