MPS-Mediobanca scandal: Investigation reveals multi-year control scheme and market impact

Milan prosecutors’ probe into Monte dei Paschi di Siena’s takeover of Mediobanca uncovers alleged multi-year strategies by major shareholders, with immediate stock market reactions and concerns over the stability of Italy’s banking sector.

The Milan prosecutor’s office has launched an in-depth investigation into Monte dei Paschi di Siena’s acquisition of Mediobanca, focusing on alleged market manipulation and obstruction of regulators. Documents seen by Bloomberg indicate that CEO Luigi Lovaglio, along with investors Francesco Gaetano Caltagirone and Francesco Milleri (holding company Delfin), may have coordinated strategies to gain control of Mediobanca and indirectly Assicurazioni Generali, Italy’s largest insurer.

The €17 billion acquisition completed in September made MPS the country’s third-largest bank by assets. Before the public takeover offer (OPS), Lovaglio reportedly already controlled 35% of Mediobanca, thanks to shares held by Delfin (17.5% in MPS, 10.1% in Generali) and Caltagirone (10.3% in MPS, 6.3% in Generali).

The investigation flags potential irregularities in the accelerated sale of 15% of MPS shares via Banca Akros in November 2024, citing opacity and possible circumvention of a mandatory takeover offer.

Following the announcement, Monte dei Paschi shares fell as much as 3.3% in a single day, totaling nearly a 10% drop since the probe became public. Mediobanca shares also declined about 5%, while Assicurazioni Generali’s stock dropped roughly 2%, reflecting investor concerns over potential regulatory scrutiny and legal risks.