Banco BPM to boycott MPS shareholder assembly

Banco BPM has officially confirmed it will not participate in the Monte dei Paschi di Siena (MPS) shareholder assembly scheduled for October 29 in Siena. The decision, made unanimously by Banco BPM's board of directors, cites legal constraints and potential conflicts of interest stemming from its 3.7% stake in MPS.

Financial analysts suggest this strategic absence could facilitate the rejection of key resolutions. By not participating, Banco BPM reduces the total capital present at the assembly, thereby increasing the relative weight of opposing votes. This is particularly significant for extraordinary resolutions, such as those regarding exchange offers for Banco BPM and Banca Generali, or the proposed merger with Mediobanca, which require a two-thirds majority of the capital present and voting.

The move adds pressure to MPS management, led by Luigi Lovaglio, as opposition to his current project approaches 38%. A minority bloc including Delfin, Caltagirone, and Edizione has signaled a preference for an Intesa Sanpaolo takeover. Additionally, Norges Bank Investment Management has announced it will vote against several proposals, including the Mediobanca merger, further complicating the path for MPS leadership.