EU Investigates Italy’s Monte Paschi 15% Stake Sale

Italy's sale of a 15% stake in the state-backed bank Monte dei Paschi di Siena (MPS) last November has come under scrutiny from European Union regulators and Milan prosecutors amid allegations that some large investors were excluded from the bidding process. The Italian Economy Minister Giancarlo Giorgetti defended the transaction, asserting that the placement was conducted properly and transparently, while the European Commission has requested details to assess whether the sale was a fair and open market transaction. The shares were sold via an accelerated bookbuilding procedure managed by Banca Akros, with stakes acquired by domestic investors closely linked to the government's plan to build a third pillar in Italy's banking sector. Notably, major investors such as UniCredit, Norway's oil fund, and BlackRock expressed interest but were reportedly told that bidding had closed, raising concerns about potential state aid violations. The ongoing EU investigation could escalate to a formal state aid inquiry, although no decision has been made yet. This sale marked a significant step in Italy's efforts to reduce its stake in MPS and foster a stable core of domestic shareholders following the bank's 2017 rescue.