BlackRock (BLK.N), the world’s largest asset manager, has declared its support for a dissident investor proposal advocating for the reinstatement of Luigi Lovaglio as chief executive of Monte dei Paschi di Siena (BMPS.MI). As the third-largest investor in the Italian bank, BlackRock’s decision carries significant weight. Monte dei Paschi investors are slated to vote this Wednesday to elect a new board and CEO, with BlackRock’s backing potentially influencing the outcome of this crucial leadership selection. The development was initially reported by the ANSA news agency on Monday.
Monte dei Paschi di Siena is a venerable Italian bank, providing a wide array of financial services to its customers. The institution is currently at the centre of a leadership contest, with shareholders poised to choose between two prominent figures. They must decide between Lovaglio, the candidate supported by the dissident group, and Fabrizio Palermo, the current CEO of utility ACEA (ACE.MI), who has been put forward by the bank’s outgoing board. This impending vote marks a pivotal moment for the bank’s governance and strategic direction.
BlackRock’s representative, when approached for comment by Reuters, affirmed that the fund manager’s voting choices are made with an approach “focused exclusively on safeguarding the long-term financial interests of our clients.” This commitment underpins their decision to back Lovaglio amid the boardroom dispute. Lovaglio’s initial departure stemmed from a significant clash within the boardroom and among shareholders regarding future plans for Mediobanca (MDBI.MI), a peer recently acquired by Monte dei Paschi, indicating deep divisions over the bank’s future trajectory.
