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Monte dei Paschi set to name veteran banker Lovaglio as CEO, sources say -Breaking


© Reuters. FILE PHOTO: People are seen inside a Monte dei Paschi di Siena bank in Rome, Italy August 16, 2018. REUTERS/Max Rossi/File Photograph

By Giuseppe Fonte

ROME (Reuters – Italy’s Monte dei Paschi di Siena could name a new chief executives as soon as Monday, after the nomination committee of the state-owned Bank Pekao suggested the ex-head of Bank Pekao in Poland for the position. Sources said.

Luigi Lovaglio (66), a veteran Italian banker, was selected by the committee to replace Guido Bastianini. Two sources close to this matter stated that one source added that the Italian Treasury was pleased with the selection, which must still go through MPS.

MPS refused to comment.

Lovaglio is known for his skills in restructuring and would reach MPS at a sensitive juncture.

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MPS is behind in a plan Italy and the EU agreed to to pay for the 2017 bailout. This gave Rome a 64% share. The Treasury increased pressure on Bastianini, Reuters reported Jan. 30, after the failure of a UniCredit sale.

However, Bastianini has not yet decided to leave and MPS’s board plans to remove him on Monday, according to sources. An MPS director quit Friday in order to free up space for the CEO.

After last year’s failure to sell UniCredit, the Treasury now negotiates with the European Union to set a new date for privatisation as well as restructuring goals.

MPS’s board meets Monday, according to bank statements. It will approve the results of 2021 as well as decide Bastianini’s future.

Lovaglio was the leader of UniCredit’s Pekao division for four decades. He left UniCredit in 2017 to sell its controlling stake.

Lovaglio, a regional bank manager in Creval, took over the management of that institution and led it toward last year’s purchase by Credit Agricole.

Bastianini, who was elected in 2020 under the support of the 5-Star Movement and opposed to MPS’ sale at any time in the future, had been appointed.

Sources claim that the Treasury would like an executive to focus on the preparation of the bank’s sale. Lovaglio is believed to be the winner over Alessandro Vandelli (ex-CEO of BPER) for the MPS post.

MPS needs to raise capital at 2.5 billion euros ($2.9billion) for the next months. This will complicate the job of the CEO.

($1 = 0.8737 euros)

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