"Banca Monte dei Paschi di Siena SpA said Chief Executive Officer Luigi Lovaglio has been notified he is under investigation for alleged market manipulation and obstructing regulators in the bank's takeover of rival Mediobanca SpA. Monte Paschi also said it received a search order from Milan prosecutors. The company is confident in the correctness of its actions and is fully cooperating with authorities, it said in the statement on Thursday, following a media report."
"Earlier Thursday Italian daily Il Corriere Della Sera reported Milan prosecutors are investigating Lovaglio and two other individuals - billionaire Francesco Gaetano Caltagirone and Delfin Sarl Chairman Francesco Milleri - for allegedly acting in coordination over a deal that allowed Monte Paschi to seize control of Mediobanca this year, without properly disclosing their alignment to the market. They are also probing the purchase of a portion of Paschi shares sold at the end of last year by the Italian government,"
Luigi Lovaglio, Chief Executive Officer of Banca Monte dei Paschi di Siena, has been notified he is under investigation for alleged market manipulation and obstructing regulators in the takeover of Mediobanca. Milan prosecutors issued a search order and the bank says it is confident in its actions and is fully cooperating with authorities. Monte Paschi shares fell sharply, trading down as much as 7.1% and 4.1% by late afternoon. Prosecutors are probing alleged coordination with Francesco Gaetano Caltagirone and Francesco Milleri, purchases of Paschi shares sold by the government, and possible concealment of agreements from regulators including the ECB and Italy's market regulator. Monte Paschi completed a €17 billion acquisition of Mediobanca in September, creating Italy's third-largest lender in a government-backed deal.
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