Monte dei Paschi di Siena faces a 70% voter turnout as major shareholders block Luigi Lovaglio’s defensive plan
An estimated 65% to 70% of capital is expected at the Monte dei Paschi di Siena shareholder meeting in Siena, scheduled for Thursday, October 29, in what will probably be the last assembly of the independent Montepaschi, where institutional investors and core stakeholders are positioned to block Luigi Lovaglio’s defensive strategy against Intesa Sanpaolo. The extraordinary assembly sits at the center of a high-stakes corporate battle as the bank confronts a potential takeover.
Shareholders align against Lovaglio’s defensive proposals
The anti-Lovaglio coalition holds approximately 40% of the total capital, a decisive block capable of defeating the extraordinary resolutions because a two-thirds majority of represented capital is required for approval, according to Milano Finanza. Key stakeholders including Delfin, Caltagirone, Edizione of the Benetton family, Praude, Fondaco Lux, and Norges Bank have already declared their opposition, alongside major institutional investors such as BlackRock, which is also expected to vote against the Lovaglio plan, as noted by Il Sole 24 Ore. Meanwhile, ANSA noted that proxy advisors ISS and Glass Lewis recommended voting against the measures due to execution risks within the board.
Union protests outside the Siena headquarters
Employees and small shareholders gathered outside the bank’s headquarters on viale Mazzini for a sit-in organized by Cgil, Cisl, and Uil unions. The labor organizations stated that the demonstration aimed to safeguard the connection between the bank, the local territory, and the community while protecting jobs and the institution’s economic and social role. Local labor representatives emphasized that Monte dei Paschi di Siena represents a fundamental pillar of the regional economic system rather than just a financial institution.
Intesa Sanpaolo secures regulatory clearance
Intesa Sanpaolo announced it received all necessary preventive authorizations from competent foreign authorities regarding the acquisition of control over Monte dei Paschi and its subsidiaries, as well as controlled and associated companies, according to ANSA and Sky TG24. The group led by Carlo Messina has thus obtained all required preventive regulatory authorizations, with the effectiveness condition deemed fulfilled. The development follows a 25-cent per share bump by Intesa in early October, paired with a condition to withdraw its public purchase and exchange offer if the Monte dei Paschi board’s counter-strategy wins approval, ANSA reported. Consob will approve the offering document within ten days of the release of the final sectoral preventive authorization, the group noted. Furthermore, Mps stated in written answers published ahead of the meeting that no meetings have been programmed or are currently planned between chief executive officer Luigi Lovaglio and Intesa Sanpaolo CEO Carlo Messina.
Frequently Asked Questions
What specific transactions make up Luigi Lovaglio’s defensive plan?
The ordinary session opens with the appointment of Gianluca Brancadoro and Alessandro Caltagirone, two minority directors co-opted to the board on September 8, whose confirmation will be submitted to separate votes. The extraordinary agenda includes delegating powers to the board of directors to carry out capital increases required to fund the operations through the issuance of new shares to be delivered in exchange. The fifth and final extraordinary point concerns the voluntary reduction of share capital from approximately 17.98 billion to 10 billion euros, allocating the released resources to available equity reserves after integrating the legal reserve.
Which entities are supporting the management’s proposals at the meeting?
Plt Holding, owned by the Tortora family holding a 1.4% stake, and the Fondazione Mps holding 0.2% have confirmed their votes in favor of Luigi Lovaglio’s strategy, according to data compiled by Milano Finanza and ANSA. Pierluigi Tortora declared that consistently with the path followed so far, they would support Lovaglio’s plan in tomorrow’s assembly, while Plt Holding votes in coherence with the support given since last April to Lovaglio, favoring his appointment as CEO.
What role does the Italian Treasury play in the current shareholder vote?
The Italian Treasury holds a 4.86% stake in Monte dei Paschi di Siena but will not participate in the voting process during the assembly, as detailed by Milano Finanza and Il Sole 24 Ore, alongside Banco Bpm, which holds a 3.75% stake and highlighted the conflict of interest linked to its own position.
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