Two sources stated Italy’s Treasury will re-appoint experienced banker Luigi Lovaglio as Monte dei Paschi di Siena’s CEO.
After the Treasury fired his predecessor, Lovaglio joined Monte dei Paschi (MPS) a year ago. He previously worked at UniCredit (CRDI.MI), where he led Bank Pekao.
MPS is 64% state-owned after a 2017 bailout.
One of Italy’s most experienced commercial bankers, Lovaglio, handled a make-or-break 2.5 billion euro ($2.7 billion) capital raising in November to help MPS pay voluntary layoffs.
Lovaglio has promised to enhance MPS’ profitability as he prepares the bank for a merger that would allow the state to satisfy re-privatization pledges made with European Union competition regulators during the bailout.
The Treasury will also select Nicola Maione, a lawyer on MPS’ board since 2017 and who headed state-controlled air traffic controller Enav, as chairman, sources added (ENAV.MI).
The Treasury, MPS’s largest stakeholder, is ready to file its board nominations in the coming hours ahead of next month’s shareholder vote to install new directors.
