ROME, June 12 (Reuters) – State-owned Monte dei Paschi di Siena doesn’t want a rescue purchaser, however a tie-up may assist different mid-sized Italian banks to develop as a substitute to serve Italy’s pursuits, its CEO mentioned on Monday.
Luigi Lovaglio made the feedback at an occasion organised by Italy’s important banking union FABI, shortly after BPER Banca (EMII.MI) CEO Piero Montani reiterated that his financial institution had little interest in shopping for MPS.
BPER and Banco BPM (BAMI.MI) are seen as potential companions for MPS to create a 3rd giant banking group alongside heavyweights Intesa Sanpaolo (ISP.MI) and UniCredit (CRDI.MI).
The conservative authorities of Prime Minister Giorgia Meloni has repeatedly mentioned such an answer would help competitors and profit Italian corporations.
Banco BPM has additionally repeatedly denied any curiosity in MPS.
In an obvious oblique reference to Banco BPM, whose important shareholder since final yr is France’s Credit score Agricole (CAGR.PA), Lovaglio mentioned it was vital to develop to keep away from being taken over.
“The issue shouldn’t be who would need us … or a 3rd vital banking group in Italy to avoid wasting MPS. … The difficulty to get to such a dimension that one can assist the economic system,” he mentioned.
“Dimension means capital. … With out ample capital one dangers turning into a takeover goal for different gamers.”
European Union guidelines on financial institution bailouts obligate the Rome authorities to chop its 64% stake in MPS.
Requested if Rome may maintain onto the financial institution as a substitute, Lovaglio mentioned “an orderly exit” of the state remained the best choice.
The veteran banker, who pulled off a 2.5 billion euro ($2.7 billion) share sale in powerful markets in November, mentioned MPS would proceed to submit good outcomes.
“Once we show we ship, as we are going to within the second and third quarter, we’ll have the ability to sit on the negotiating desk with somebody who has a long-term view and the most effective curiosity of the nation at coronary heart,” he mentioned.
($1 = 0.9302 euros)
Reporting by Valentina Za and Andrea Mandala; Enhancing by Alexander Smith and Richard Chang
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