Mps, Franco: "It will not be a sale, a solution in the interest of the country"

• Government ahead on Mps, commitment to avoid "stew"

• Mps, Unicredit accelerates.

  Giani: "No to negotiations without social partners and territory"

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04 August 2021 An aggregation of Monte del Paschi is in the interest of the country. Economy Minister Daniele Franco explains the reasons why the Treasury intends to proceed with the operation with UniCredit before the Finance Committees of the Chamber and Senate.

"At this moment the conditions do not exist to question the commitment to divest" the controlling stake in the bank. The dialogue with UniCredit, the only one that has expressed interest, is "a necessary initiative" indicates the minister.

"This operation constitutes a strategically superior solution from the point of view of the general interest of the country. An aggregation would be motivated from an industrial point of view", adds Franco: " I would like to reassure you that it will not be a state-owned sale. "

Possible acquisition of Unicredit stake by the Mef

At the end of the UniCredit-Mps aggregation, the Ministry of Economy could find itself a shareholder of the bank in Piazza Gae Aulenti, says Franco in the hearing.

Downstream of the transaction "it is possible that the Ministry of Economy will receive UniCredit shares, but any such participation in the capital should not alter the balance of governance. The Ministry and the Government will in any case participate in all the economic benefits of creating value deriving from the 'operation that must necessarily take place at market conditions ", adds Franco. The minister explains that "impaired loans and legal disputes" will remain outside the scope of the aggregation.

Capital in excess of € 2.5 billion is needed

"The outcome of the stress test confirms, for Monte dei Paschi, the need for a major structural strengthening", says the Minister of Economy, who then specifies: "Even if only to bring the bank's capital ratios back to the average values ​​of the European banks would require a capital increase well above that envisaged in the 2021-2025 plan ", which envisages an increase" between 2 and 2 and a half billion ".

Respect the commitments made with the EU

The new industrial plan of Mps "presents objectives that do not comply with the requests of the European Commission" in particular the cost reduction set at 51% of revenues from Brussels, while according to the plan, 74% is expected in 2021 and still 61% by 2025 Franco stressed that "the new plan is subject to dialogue with the European Commission". 

Government will protect workers

Mps has "over 21,000 employees. The government will ensure the utmost attention to the protection of workers by using the negotiating spaces and defining the safeguards to protect the occupation of the territory with a plurality of tools and initiatives. The protection of the brand will also represent a government priority. The brand has not only historical but commercial value ".

No risk stew

Franco explained that "the perimeter to be sold should include all the assets, real estate, shareholdings, contracts and legal relationships inherent in the exercise of Montepaschi's banking and commercial activity. The exact definition will be available at the outcome of the two diligence, there are currently no indications that the risk of dismemberment of the MPS bank is foreseen ". The minister then added that "these will obviously be considered indications" from the antitrust authorities.