Sale of Italy's MPS should help create several big banks, says Meloni

Reuters

Published Apr 22, 2023 06:32AM ET

MILAN (Reuters) - The privatisation of Italian lender Monte dei Paschi di Siena should foster the creation of several large banking groups in the country, Prime Minister Giorgia Meloni was quoted as telling the Milano Finanza newspaper on Saturday.

Monte dei Paschi (MPS), of which the government owns 64% following a 2017 bailout, is seen playing a pivotal role in the consolidation expected among Italy's mid-sized lenders.

After failing to clinch a sale of MPS to UniCredit in 2021, the government is expected to seek another bank interested in buying its stake in the Tuscan lender.

"We want to manage the exit of the state from the capital of MPS in an orderly manner to create the conditions for more large banking groups in Italy," Meloni was quoted as saying in an interview published on Saturday.

The government has just decided to renew Luigi Lovaglio's mandate as MPS chief executive for another term.

"We must not repeat the mistakes of the past. We confirmed Lovaglio at the helm of Monte dei Paschi, the CEO successfully led the last capital increase, and now we must work to bring Monte back to the private market," Meloni said.

The government is also working to sell ITA Airways, the successor of Alitalia, to Germany's Lufthansa with a deal expected in the coming days.

"Lufthansa will have to ensure that Italy is at the centre of its interests and present an effective, growth-oriented business plan that serves the routes of trade and tourism," Meloni said.

Regarding former phone monopoly TIM, she indicated that Rome was monitoring the group's efforts to sell its landline grid and submarine cable unit Sparkle.