Allegro, non troppo

19 March 2012 By George Hay Follow @gfhay

The man who built UniCredit with a blitz of deals can’t repeat the trick at MPS, which he is now going to chair – at least until its finances are stabilised. Even then, Profumo will need to face down scepticism over past deals and get any plans past the bank’s core investor.

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Alessandro Profumo, UniCredit’s former chief executive, is to become the new chairman of Monte dei Paschi, Italy’s third largest bank.
The Fondazione Monte dei Paschi di Siena, a charitable foundation which holds almost half of the bank’s shares, said in a statement on March 18 that it had proposed Profumo alongside five other new board members including Fabrizio Viola, MPS’s new chief executive.
Monte dei Paschi currently has until the end of June to raise 3.3 billion euros to meet the requirements of a stress test conducted by the European Banking Authority.
The foundation has been given until the end of April by creditors including Credit Suisse, JPMorgan and Mediobanca to repay some of its 1.1 billion euros of debt. It plans to sell part of its stake in MPS.
MPS shares had risen 2.2 percent to 0.39 euros by 1500 GMT on March 19.

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