Major MPS investor Caltagirone says there is no clash with CEO Lovaglio

Caltagirone's Position on MPS Leadership

By Valentina Za and Giuseppe Fonte

Background on MPS and Mediobanca Acquisition

MILAN, Jan 16 (Reuters) - Gruppo Caltagirone, a major investor in Monte dei Paschi di Siena, said on Friday speculation about a clash with the Italian bank's CEO Luigi Lovaglio was misplaced, adding the board was merely having discussions over the bank's strategy and governance.

Investor Reactions and Future Implications

Lovaglio, 70, last year led Monte dei Paschi (MPS) to acquire bigger rival Mediobanca as consolidation swept Italy's banking sector.

The deal boosted the influence of two key investors in Italian finance: construction tycoon Francesco Gaetano Caltagirone and Delfin, the holding company of the Del Vecchio family. They are the two biggest MPS investors and both also hold stakes in Italy's largest insurer Generali, alongside Mediobanca.

With MPS now positioned at the heart of Italy's financial system, decisions about its leadership will be critical for the sector's future shape, bankers say.

Lovaglio is seeking a renewed mandate from the MPS board in April, but several sources familiar with the matter have told Reuters in recent months that he faces challenges, with a Milan prosecutors' probe into the Mediobanca deal complicating matters.

MPS has expressed full confidence in the CEO, who is under investigation together with Caltagirone and Delfin Chairman Francesco Milleri for an alleged hidden accord to gain control of Mediobanca and Generali through MPS.

All three have denied any wrongdoing and Italy's market regulator has so far ruled out any undisclosed accord.

Gruppo Caltagirone, commenting on Friday about a Financial Times report of a clash between the MPS CEO and Caltagirone, said that an internal debate over a strategic plan demanded by regulators and the board renewal should not be interpreted as reflecting the role of a major shareholder.

"Linking this boardroom discussion to the role of a major shareholder, or to Mediobanca's stake in Generali, is an opportunistic reading," it said.

On Friday Delfin threw its weight behind Lovaglio saying it supported the bank's management, as it ruled out being in talks at present to sell its MPS stake.

Delfin owns 17.5% of MPS, Caltagirone 10.3%. They came on board as Italy, which rescued MPS in 2017 acquiring a 68% stake, cut its holding below 5%.

After the Treasury reduced its stake, MPS replaced five directors, appointing among the new board members Caltagirone's son Alessandro and Elena De Simone, a director at Caltagirone SpA.

(Reporting by Valentina Za and Giuseppe Fonte. Editing by Jane Merriman)