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The chief government of Italy’s largest lender, Intesa Sanpaolo, has known as on governments to cease interfering in banking offers, leaving approvals as much as regulators and the shareholders free to selected.
“It’s the shareholders . . . those that are invested in corporations . . . who decide their future,” Carlo Messina advised the Monetary Instances. “Governments can’t choose primarily based on their liking . . . they need to solely intervene in circumstances the place monetary stability is at stake.”
The feedback come as Intesa’s important rival, UniCredit, is locked in twin battles with Rome and Berlin over potential takeovers of Milan-based Banco BPM and German lender Commerzbank.
This week UniCredit lifted its Commerzbank publicity to twenty-eight per cent, slightly below the 30 per cent threshold that might power it to make a proper takeover bid. Germany’s outgoing authorities responded by inviting the Italian lender to promote its stake.
“It’s clear that at the moment we’re in a part the place political consensus is constructed on defending ones nationwide borders in sure sectors, however UniCredit already owns a big German financial institution [HVB],” stated Messina.
Final month UniCredit additionally launched a €10bn takeover provide for its crosstown rival BPM, derailing the Italian authorities’s plans to merge BPM with Monte dei Paschi di Siena, which Rome is within the technique of privatising. BPM rejected the provide as too low, and stated the takeover would diminish competitors within the Italian banking market.
“I consider {that a} third large participant will emerge in Italy regardless, because the market will search this,” stated Messina.
“We view extra consolidation and extra competitors within the Italian banking sector positively as that is key to making sure strong investments in cyber safety and expertise, which contribute to the energy of the Italian financial system.”
Beneath a decade of Messina’s management, Intesa’s market capitalisation has greater than doubled to €69bn and the financial institution distributed a document €31bn.
In 2020 he additionally launched a hostile €4.2bn takeover of rival UBI Banca, which shareholders authorised after 5 months of tense negotiations.
“Our acquisition of UBI Banca happened inside the framework [I mentioned], respecting the positions of varied authorities and receiving full approval from the market,” stated Messina.
Over his newest three-year time period on the helm — which expires in April, when he’ll search a renewal of his contract — Messina has made expertise upgrades a key pillar of his technique.
Nevertheless, current glitches, together with a breakdown of its banking app this month and unlawful accesses to politicians’ non-public financial institution accounts by a rogue worker, have positioned the lenders’ IT system within the highlight.
Messina stated the financial institution had since invested greater than €30mn to arrange a brand new inner controls system and segregate politicians’ accounts.
