MILAN, March 26 (Reuters) - Monte dei Paschi di Siena (MPS) <BMPS.MI> filed a complaint with banking and markets supervisors on Thursday over a slate of board nominees that aims to keep CEO Luigi
Monte dei Paschi di Siena Files ECB Complaint Over CEO Lovaglio Reappointment Bid
Legal Dispute Surrounding CEO Reappointment at MPS
Background of the Complaint
MILAN, March 26 (Reuters) - Monte dei Paschi di Siena (MPS) <BMPS.MI> filed a complaint with banking and markets supervisors on Thursday over a slate of board nominees that aims to keep CEO Luigi Lovaglio in the job, a person with knowledge of the matter said.
Intensifying Legal Battle Over Leadership
The move highlights the intensifying legal battle around the leadership of MPS, whose board on Wednesday stripped Lovaglio of his powers, but failed to force him out.
Support from PLT Holding
Supported by small MPS investor PLT Holding, Lovaglio has challenged the board's decision to rule him out for another mandate.
Details of the Complaint
The bank complained to the European Central Bank, the Bank of Italy and Italian markets regulator Consob that the CEO should have disclosed sooner the alliance with PLT, given his duties towards MPS and its board, the person said.
The complaint also said the proponents of the slate should have requested prior authorisation from the ECB, the person added, given Lovaglio's position and his influence over the bank.
Regulatory Response and Next Steps
In acknowledging it had received the PLT list on Wednesday, MPS had said it would assess its compliance with relevant regulations.
PLT Holding declined to comment.
(Reporting by Valentina Za, editing by Gavin Jones)
