Author: admin

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

The chief executive of Italian bank Banca Monte dei Paschi di Siena is under investigation for alleged market manipulation and obstruction of supervisory functions in connection with its takeover of rival Mediobanca.

MPS said on Thursday that it had received a search warrant and its chief executive Luigi Lovaglio had been served a “notice of investigation by Milan’s prosecutor’s office in his capacity as chief executive officer”.

Milanese prosecutors are also investigating MPS and its top shareholders Delfin and Francesco Gaetano Caltagirone for alleged market manipulation and obstruction of regulatory functions, according to three people familiar with the details of the investigation.

Delfin and Caltagirone were also top shareholders in Mediobanca.

The investigation was first reported by Italian newspaper Corriere della Sera.

Delfin declined to comment. Caltagirone did not immediately reply to a request for comment.

MPS said it was “confident it can provide all the necessary information to clarify the correctness of its actions and expresses its full trust in the competent authorities, with whom it confirms its full co-operation”.

Shares in MPS fell more than 4 per cent in afternoon trading in Milan.

This is a developing story