🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

UniCredit chairman-elect says Mustier's exit not due to MPS

Published 12/06/2020, 06:21 AM
Updated 12/06/2020, 06:25 AM
© Reuters. FILE PHOTO: Unicredit bank CEO Mustier holds his mascot Elkette during the UniCredit's shareholders meeting in Rome

ROME (Reuters) - Jean Pierre Mustier's decision to step down as CEO of UniCredit had nothing to do with a possible acquisition of bailed-out rival Monte dei Paschi (MPS), UniCredit Chairman-elect Pier Carlo Padoan was quoted as saying on Sunday.

In an interview with Italy's Corriere della Sera daily, Padoan denied Mustier's exit facilitates a merger with MPS, after speculation about a deal hurt UniCredit shares last week.

"MPS played no part in Mustier's decision to leave UniCredit at the end of his current term. Moreover, his decision does not change in any way the bank's position towards any such operation," Padoan said.

Mustier resigned last Monday citing a clash with the board over strategy. UniCredit had been in talks with the Treasury over MPS, which Rome is trying to re-privatise, sources had said.

Mustier had prioritised returning cash to shareholders over mergers and had worked since his arrival in mid-2016 to reduce Italy's exposure to its fragile home turf.

In an attempt to reassure investors, UniCredit's board said the capital return strategy was unchanged and ruled out deals that harmed the bank's capital position.

Padoan said Mustier's decision was due to "different opinions" over "the steps to take for the integration strategy outside of Italy. The strategy, on which we agree, is not in question. Different views emerged on how to take it forward".

Padoan, who was named in October as incoming chairman, denied a report saying he had challenged Mustier's international focus advocating instead expansion in Italy.

A former Italian economy minister who oversaw the MPS bailout and a Member of Parliament for the ruling PD party at the time of his appointment, Padoan also sought to dispel concerns about political meddling.

"Political interference, real or alleged, can only be harmful ... But in UniCredit's decisions political interference has played no role."

© Reuters. FILE PHOTO: Unicredit bank CEO Mustier holds his mascot Elkette during the UniCredit's shareholders meeting in Rome

Padoan, who is leading the board's search for Mustier's replacement, said the new CEO needed to have "a high international standing, a strong knowledge of the banking system, inclusive leadership and strategic vision".

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.