CEO of Mediobanca, Nagel, Resigns Following Monte Paschi's Takeover Control
In a significant move for the Italian banking sector, Mediobanca CEO Alberto Nagel has announced his resignation, following the acceptance of Banca Monte dei Paschi di Siena's takeover offer by investors representing approximately 63% of Mediobanca's shares.
Nagel, who has led Mediobanca for 17 years, making him one of Europe's longest-serving bank CEOs, navigated the bank through numerous challenges, including the global financial crisis, the European debt crisis, and multiple Italian government changes. His tenure was marked by expansion into leading positions in retail banking and wealth management.
Monte Paschi's improved offer, which includes a cash component, values Mediobanca at about €17.5 billion. The offer values Mediobanca's stock at €21.55 apiece. The acquisition will create Italy's third-biggest bank, aligning with Italian Prime Minister Giorgia Meloni's ambition to establish a new large lender that can rival Intesa Sanpaolo and UniCredit.
Nagel's farewell message recapped the bank's successes and challenges under his tenure and thanked employees for their achievements. In a nod to ancient Roman poetry, he quoted Horace: "Graecia capta ferum victorem cepit" - which translates to "Conquered Greece took captive her savage conqueror."
The resignations will be effective from the next annual meeting scheduled for Oct. 28. Alongside Nagel, some other members of Mediobanca's board are also stepping down. The departure of Nagel is likely to raise questions about the strategy of Assicurazioni Generali, Italy's largest insurer, as Mediobanca is Generali's largest investor with a 13% stake.
The two investors, the heirs to the late billionaire Leonardo Del Vecchio and tycoon Francesco Gaetano Caltagirone, spearheaded earlier efforts to oust Nagel. These investors, along with others, have committed their shares to Monte Paschi's takeover of Mediobanca.
A new board will be named at the next annual meeting. The acquisition ambition of Italian Prime Minister Giorgia Meloni is to establish a new large lender that can rival Intesa Sanpaolo SpA and UniCredit SpA. The changes in the Italian banking landscape are set to continue as the integration of Mediobanca and Monte Paschi unfolds.
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