MILAN, Dec 5 (Reuters) - Monte dei Paschi di Siena on Friday expressed support for its chief executive, who is under criminal investigation in connection with the bank's takeover of Mediobanca. "The
Monte dei Paschi Board Backs CEO Lovaglio Amid Probe
MILAN, Dec 5 (Reuters) - Monte dei Paschi di Siena on Friday expressed support for its chief executive, who is under criminal investigation in connection with the bank's takeover of Mediobanca.
"The board ... unanimously renewed its full confidence in Chief Executive Luigi Lovaglio, confirming he complies with ... requirements set for bank executives," the bank said, referring to regulatory requirements.
MPS, Italy's oldest bank, completed a hostile takeover of Mediobanca in September, securing a majority stake. Milan prosecutors are investigating alleged market manipulation and obstruction of regulators in the deal.
Lovaglio, 70, and MPS' two biggest shareholders are targets of the probe. The shareholders are Italian construction tycoon Francesco Gaetano Caltagirone and Delfin, the holding company of late Ray-Ban billionaire owner Leonardo Del Vecchio.
Mediobanca has historically been insurer Assicurazioni Generali's main shareholder, and prosecutors have alleged the manipulation was intended to strengthen the two investors’ influence over Mediobanca and Generali.
(Reporting by Valentina Za; Editing by Cynthia Osterman)
