Italian Treasury Official Investigated for Alleged Insider Trading

Investigation Overview

MILAN/ROME, Feb 9 (Reuters) - An Italian Treasury official in charge of managing state-backed companies is under investigation on suspicion of insider trading, two sources with direct knowledge of the matter told Reuters on Monday.

Details of the Allegations

Stefano Di Stefano, head of the corporate holdings department at the ministry, is being probed for having purchased shares in banks Monte dei Paschi di Siena (MPS) and Mediobanca around the time of MPS's successful takeover bid for Mediobanca, the sources said.

Reactions from Officials

The prosecutors believe Di Stefano may have purchased shares worth a total of around 120,000 euros ($140,000) in the two banks, one of the sources said.

Context of the Investigation

Both sources asked not to be named due to the sensitivity of the matter.

Requests for comment sent to the ministry and to Di Stefano went unanswered.

Di Stefano is also a board member of MPS, in which the Treasury holds a 5% stake.

Prosecutors opened the case against him after making initial checks as part of a separate investigation focusing on MPS' acquisition of Mediobanca.

In that investigation, Milan prosecutors are looking into whether MPS Chief Executive Luigi Lovaglio and the bank's two leading shareholders coordinated with each other while keeping supervisory authorities and other investors in the dark.

All parties denied any wrongdoing, and Italian Economy Minister Giancarlo Giorgetti said in December that he had not exerted "any interference or pressure" to influence the outcome of the bid.

($1 = 0.8398 euros)

(Reporting by Emilio Parodi in Milan and Giuseppe Fonte in Rome; editing by Gavin Jones and Kevin Liffey)