Monte dei Paschi Stock Rises Following Report of No Hidden Shareholder Agreement by Markets Watchdog
Market Reaction: Shares of Italy's Monte dei Paschi di Siena rose 4.6% following a report that the markets regulator Consob found no evidence of a secret agreement among top shareholders to control Mediobanca.
Ongoing Investigation: The bank is under investigation by Milan prosecutors regarding an alleged hidden accord between its largest shareholders to gain control of Mediobanca and insurer Generali, with MPS CEO Luigi Lovaglio also implicated.
Support for CEO: MPS expressed full support for CEO Lovaglio after its board determined he met the necessary conduct requirements for bank executives, despite the ongoing criminal probe.
Contradictory Findings: A Consob report indicated no concerted action between the two major shareholders, but the investigation by prosecutors continues, leaving open the possibility of new evidence emerging.
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