Potential sale of Monte Paschi to UniCredit "inappropriate" with Padoan as chairman - 5-Star

Credit: REUTERS/MAX ROSSI

A sale of Banca Monte dei Paschi to UniCredit would be inappropriate after UniCredit announced it would appoint former Economy Minister Pier Carlo Padoan as chairman, lawmakers from Italy's ruling 5-Star Movement said.

MILAN, Oct 15 (Reuters) - A sale of Banca Monte dei Paschi BMPS.MI to UniCredit CRDI.MI would be inappropriate after UniCredit announced it would appoint former Economy Minister Pier Carlo Padoan as chairman, lawmakers from Italy's ruling 5-Star Movement said.

Padoan oversaw the bailout of Italy's oldest bank, Monte dei Paschi, back in 2017, with Rome spending 5.4 billion euros ($6.31 billion) on a 68% stake. Under an agreement with European Union authorities, the stake must be sold by mid-2022.

"It would be paradoxical if, after the public commitment that provided for a support of several billion euros ... today there was a possible sale of MPS to UniCredit with Padoan in the role of chairman," the 5-Star lawmakers wrote in a note.

UniCredit, long seen as the best candidate to take over ailing Monte dei Paschi, said on Tuesday it would appoint Padoan as chairman when it renews the board next spring, in a choice that fueled speculation over a possible tie-up between the two lenders.

($1 = 0.8555 euros)

(Reporting by Giuseppe Fonte, writing by Agnieszka Flak)

((agnieszka.flak@thomsonreuters.com; +39 02 6612 9450; Reuters Messaging: agnieszka.flak.thomsonreuters.com@reuters.net))

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