Giancarlo Giorgetti, the minister of the economy, stated on Sunday that Italy’s Treasury will reduce its holdings in the bailed-out Monte dei Paschi di Siena (MPS) (BMPS.MI) bank at its own pace and without outside pressure.
His comments follow Foreign Minister Antonio Tajani’s statement on Saturday that Rome might quicken the privatization of MPS and present a proposal for the operation “in the short term.”
Rome is obligated to eventually sell its 64% bank ownership under commitments made to European Union authorities in 2017 when MPS received a 5.4 billion euro ($5.82 billion) bailout.
Italy and Brussels agreed on a new deadline for the government to return MPS to private ownership after an attempt to sell it to UniCredit (CRDI.MI) in 2021 failed. However, the terms were never fully disclosed.
Giorgetti remarked at the European House-Ambrosetti business forum, “We will address (the matter) quietly without being dictated to by anyone, let alone in a hurry.
Giorgetti and Prime Minister Giorgia Meloni have recently stated that the government would try to increase bank competition by privatizing MPS.
The possibility of a merger with Banco BPM (BAMI.MI) or BPER Banca (EMII.MI), the third and fourth-largest banks in Italy, respectively, is now more likely, despite the fact that both have repeatedly stated they have no interest in MPS.
The search for strategic partners would be supported by the move, according to government sources. According to the source, Italy’s Treasury is still willing to sell one or more shares in MPS to reduce its ownership of the company.
