Italy's Caltagirone group strengthens governance procedure over Generali, MPS stakes

MILAN, ‌Dec 15 (Reuters) - Italy's Caltagirone construction group, ‍a leading ‌investor in bank Monte dei Paschi di ⁠Siena and insurer ‌Generali, said on Monday it was beefing up governance controls relating to the two investments.

The ⁠decision comes after Milan prosecutors placed under investigation Chairman ​Francesco Gaetano Caltagirone as part of ‌a probe into ⁠alleged hidden coordinated action with another major investor to gain control of merchant bank ​Mediobanca and Generali through Monte dei Paschi.

The Caltagirone group rebutted the allegations in a statement, "reaffirming ... its strong belief in the ​integrity ‍of the chairman's ​conduct, expressing the hope that this will soon be formally recognised."

It said the chairman had decided to give up delegated powers to vote at the shareholder meetings of ⁠Monte dei Paschi and Generali.

If required to vote at the ​meetings, the Caltagirone group will first consult its independent board members, possibly enlist external advisers, and finally have ‌the decision approved by its board, it said.

(Reporting by Valentina Za, editing by Gavin Jones)