MPS shares drop again amid Mediobanca probe
Shares of Monte dei Paschi di Siena fell for a third consecutive session on Monday as prosecutors in Milan investigate alleged market manipulation linked to the bank’s €16 billion takeover of Mediobanca. The deal, completed in September, placed Mediobanca under MPS control and has now drawn scrutiny over possible obstruction of regulators.
MPS stock was down 3.3% by late morning, underperforming Italy’s broader banking index, which also slipped. The decline follows losses recorded on Thursday and Friday, when news of the probe first surfaced. Despite the recent drop, the bank’s shares have risen sharply since early 2024, outperforming the sector, News.Az reports, citing Reuters.
The investigation targets MPS, Chief Executive Luigi Lovaglio, and main shareholders Delfin and Caltagirone. All parties say they have complied with laws and expect to prove their actions were proper. The takeover is the biggest move in a wider reshaping of Italy’s financial landscape following the partial privatisation of MPS in 2024.
MPS is preparing a strategic plan for the newly combined entity, which will be reviewed by the European Central Bank in the coming months.
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