Paschi, Investors Coordinated to Buy Mediobanca, Prosecutors Say

Core Viewpoint - Allegations have emerged regarding coordinated actions by Banca Monte dei Paschi di Siena's CEO and two major investors to gain control over Mediobanca and Assicurazioni Generali, raising concerns about market manipulation and lack of transparency in the acquisition process [1][2][5]. Group 1: Allegations and Investigations - Milan prosecutors are investigating a multiyear strategy by billionaire Francesco Gaetano Caltagirone and Delfin Sarl's Chairman Francesco Milleri to take control of Mediobanca, aiming ultimately to control Generali, Italy's largest insurer [2][5]. - The investigation focuses on alleged market manipulation and obstruction of regulators related to Monte Paschi's acquisition of Mediobanca, with no charges filed against the individuals or companies involved as of now [5][12]. - Prosecutors claim that the concealed coordination among the parties allowed them to avoid mandatory cash takeover bids once their combined stake exceeded 25% in Mediobanca [6][10]. Group 2: Stakeholder Positions - Delfin and Caltagirone have been significant shareholders in both Mediobanca and Generali since at least 2016, with Mediobanca holding a 13.2% stake in Generali, while Delfin and Caltagirone own 10.1% and 6.3% respectively [8][9]. - Delfin holds a 17.5% stake in Monte Paschi, and Caltagirone has a 10.3% stake, making them among the largest shareholders in the bank [9]. Group 3: Acquisition Details - Monte Paschi completed a €17 billion ($19.7 billion) acquisition of Mediobanca in September, creating Italy's third-largest lender by assets [4]. - The strategy culminated in November 2024 when Italy's Treasury sold a 15% stake in Monte Paschi, allegedly favoring buyers aligned with the Mediobanca takeover plan [11][12]. - The sale process reportedly excluded other interested investors, raising concerns about potential conflicts of interest due to the Treasury's dual role as seller and supporter of Monte Paschi's offer [12].