**Banca Monte dei Paschi Backs CEO Amid Mediobanca Acquisition Probe**
**Meta Description:** Banca Monte dei Paschi reaffirms support for CEO Luigi Lovaglio during an investigation into the Mediobanca acquisition, as shares decline.
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**Banca Monte dei Paschi Backs CEO Amid Mediobanca Acquisition Probe**
Banca Monte dei Paschi di Siena SpA has expressed its unwavering support for Chief Executive Officer Luigi Lovaglio as he faces scrutiny regarding the bank’s acquisition of Mediobanca SpA. In a statement released late Friday, the bank’s board of directors confirmed that they “unanimously renewed its full confidence” in Lovaglio following a thorough review of the situation.
The investigation, led by Milan prosecutors, centers on allegations that Lovaglio coordinated the Mediobanca acquisition with two prominent investors: billionaire Francesco Gaetano Caltagirone and Delfin Sarl Chairman Francesco Milleri. According to documents reviewed by news sources, the trio reportedly failed to disclose their collaboration to the market or relevant authorities.
Following the announcement of the investigation, Monte Paschi’s shares experienced a significant decline, closing down 4.6% on the day of the searches and extending the drop to approximately 13% since then.
In September, Monte Paschi successfully completed the €17 billion ($19.7 billion) acquisition of Mediobanca, a deal that received backing from the Italian government under Prime Minister Giorgia Meloni. The two billionaire investors began increasing their stakes in Monte Paschi about a year ago, coinciding with the government’s partial divestment of its holdings.
Looking ahead, Lovaglio’s primary challenge will be to implement the merger effectively and meet the cost-cutting targets outlined in the strategic plan. Monte Paschi stated that working groups composed of staff from both banks are “continuing to work at full capacity” to achieve the anticipated synergies.
The acquisition is expected to enhance Monte Paschi’s wealth management operations and facilitate an annual cost reduction of €300 million. Additionally, the expanded bank aims to accelerate the utilization of €2.9 billion in deferred tax assets, which would provide significant capital advantages.
**FAQ**
**What is the current status of Banca Monte dei Paschi’s acquisition of Mediobanca?**
Banca Monte dei Paschi has completed the acquisition of Mediobanca and continues to support CEO Luigi Lovaglio amid an investigation into the deal’s coordination with key investors.
