Mps down, analysts say third list creates uncertainty in the medium term

(Il Sole 24 Ore Radiocor) - Traveling down Banca Mps in Piazza Affari (FTSE MIB), in the company of the entire banking sector in Italia, which is suffering from the uncertainties generated by the escalation of the conflict in Iran. But the Sienese bank's stock was also affected by a piece of news that appeared over the weekend: Plt Holding, the Tortora family's investment vehicle that holds 1.2% of Monte's capital, presented a list (the third) of twelve candidates for the renewal of the board of directors of the Sienese bank, proposing the reconfirmation of the outgoing CEO, Luigi Lovaglio, at the helm of the Sienese institution and Cesare Bisoni for the position of chairman.

The list presented by Plt joins that of the outgoing board of directors, which instead excluded Lovaglio from the shortlist of candidates. The Rocca Salimbeni shareholders' meeting will be held on 15 April. In the meantime, according to press rumours, the Mps nominations committee, headed by Domenico Lombardi and responsible for assessing the congruity of the lists, would immediately open an inquiry into the 'Lovaglio case'. So much so, in fact, that a board of directors could ask for the resignation of the current CEO, or challenge him by removing his proxies.

Returning to the Tortora family's list, the declared objective, Equita analysts point out, is to obtain a majority of seats on the Board of Directors, counting on the vote of funds and international investors. The aim is to give continuity to the implementation of the industrial plan recently presented by Lovaglio, which aims at a rapid integration of Mediobanca. Tortora's goal is to obtain at least 20% of the vote. "We are aiming for a majority in order to be able to elect as many councillors as possible with the Capital Law criteria. We are aiming to win in the shareholders' meeting, Tortora said in an interview with Radiocor, in which the entrepreneur explained that he does not have any heavyweight partners behind him to support the list, but is aiming for the consensus of the rest of the market: "It must be a list that is appreciated by the ECB, first and foremost, and I believe it can be precisely because of the multidisciplinary nature of the curricula presented. On the list there are not only skills related to banking ('because that is a given') but also in other areas that 'are needed if we want to grow as a bank in the future. And so the market must appreciate the matrix of these skills'. Finally, Tortora specifies that he has had no contact either with Francesco Milleri of the Delfin holding company, or with the Caltagirone group, and says he is convinced that Lovaglio's confirmation would lead to "implementing the industrial plan, finalising it in the best possible way and in the shortest possible time, also to protect all shareholders in order to provide stability".

In the background, Equita points out, it remains to be assessed 'how the ongoing investigations by the judiciary, in which Lovaglio is among those under investigation, may affect voting indications. On the shareholder front, from what emerges, it would appear that Delfin (17.5%) and Mef (4.9%) are oriented towards abstaining or not participating in the shareholders' meeting, Girondi (credited with around 3%) in support of the alternative list, while the position of Banco Bpm (3.7%) is not yet known. With Caltagirone (11.5%) supporting the board of directors' list, the funds' vote will therefore be decisive, on which the proxy indications expected at the end of the month will also weigh heavily'.

"In the short term," the brokers explain, "the presentation of an alternative list introduces an element of uncertainty on governance (according to La Repubblica, some directors are considering measures to reduce the CEO's proxies before the shareholders' meeting), while at the same time helping to keep investors' attention high. The outcome of the vote will largely depend on the participation of the main shareholders and the orientation of institutional capital, with the risk, in the event of a very close outcome, of a more fragmented composition of the board. In this context, Mps stock could benefit in the short term from renewed interest linked to the proxy fight, while in the medium term performance will remain anchored to the ability of the future governance to express a balanced structure, consistent with regulatory expectations and capable of guaranteeing decision-making stability and continuity in the execution of the industrial plan".