Sale of Italy’s Monte dei Paschi should help create several big banks, says PM Meloni

Milan, April 22 (BNA): Prime Minister Giorgia Meloni told Milano Finanza newspaper that the privatization of Italian lender Monte dei Paschi di Siena (BMPS.MI) should promote the creation of several large banking groups in the country. Saturday.


Reuters reports that Monte dei Paschi (MPS), which is 64% owned by the government after the 2017 bailout, plays a pivotal role in the expected merger of the two medium-sized lenders in Italy.


After failing to conclude the sale of MPS to UniCredit (CRDI.MI) in 2021, the government is expected to look for another bank interested in buying its stake in the Tuscan lender.


“We want to manage the country’s exit from the MBS capital in an orderly way to create conditions for more large banking groups in Italy,” Meloni was quoted as saying in an interview published on Saturday.


The government has just decided to renew Luigi Lovaglio’s mandate as CEO of MPS for another term.


“We must not repeat the mistakes of the past. We confirmed that Lovaglio is at the helm of Monte dei Paschi, the CEO successfully led the recent capital increase, and now we must work to bring Monte back into the private market,” Meloni said.


The government is also working to sell Alitalia’s successor, ITA Airways, to Germany’s Lufthansa (LHAG.DE) with a deal expected in the coming days.


“Lufthansa will have to ensure that Italy is at the center of its interests and present an effective and growth-oriented business plan that serves trade and tourism routes,” Meloni said.

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Regarding former telephone monopoly TIM (TLIT.MI), it indicated that Rome was monitoring the group’s efforts to sell its terrestrial network and submarine cable unit Sparkle.


Meloni told the newspaper, “The government will not interfere. It is on alert to ensure that there are no situations that threaten the national interest.”


TIM is now reviewing new non-binding bids for the assets it received from KKR (KKR.N) and government lender Cassa Depositi e Prestiti (CDP), which is working with Macquarie (MQG.AX).


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