Italian businessman Francesco Gaetano Caltagirone has issued a warning regarding the potential merger of Banca Monte dei Paschi di Siena (MPS) and Banco BPM. He stated that such a move could weaken the historic Tuscan bank and pose a significant risk for Italian savings. Market speculation has intensified in recent weeks over a long-discussed tie-up between Banco BPM and MPS, in which Caltagirone holds a substantial stake, being the second-largest investor.
Banca Monte dei Paschi di Siena, renowned as the world’s oldest bank, is a historic Tuscan institution with roots stretching back five centuries. Last week, Banco BPM CEO Giuseppe Castagna indicated the bank’s strong position to capitalise on Italian M&A opportunities, confirming that all options were under examination. France’s Credit Agricole is the main shareholder of Banco BPM, which already owns a 3.7% stake in MPS. Banco BPM also played a crucial role in a fraught shareholder vote on April 15 that saw the reinstatement of MPS’s ousted CEO, Luigi Lovaglio, a move Caltagirone opposed, backing an alternative CEO candidate.
In an interview with Corriere della Sera, Caltagirone expressed his deep apprehension. “I fear that the outcome of the recent shareholders’ meeting will, on the one hand, facilitate the merger of MPS into BPM, thereby destroying something that has existed in Siena for five centuries, and, on the other hand, lead to a new assault on Italian savings,” he stated. He further conveyed his impression of “strong pressure for BPM to absorb MPS” rather than the reverse, suggesting such a move would lead to the relocation of MPS headquarters to Milan. Caltagirone believes this shift would erode local expertise and dismantle the economic activities built around the bank over centuries in Siena.
