Mediobanca finds ally in Italian power play
Friday 14 May 1999
Shares in Unicredito, one of the key players in the drama, rose sharply yesterday on talk that Deutsche may buy a significant stake in the bank.
Unicredito stunned Italian financiers earlier this year when it launched a $13bn merger bid for rival Banca Commerciale Italiana. The bid struck at the heart of Mediobanca's traditional power base and threatened to dramatically change the balance of power within Italian finance.
But Mediobanca, which has over the past fortnight staged a dramatic come- back after being all but written off, is understood to be seeking to turn the tables on Unicredito by forcing a block representing 38 per cent of the bank to be placed in friendly hands. Italian press reports say that a senior executive from Deutsche Bank met Mediobanca's chief executive Vincenzo Maranghi on Wednesday to discuss its role in the bid.
The latest move follows the success of Mediobanca in foiling any hopes of BCI agreeing to the Unicredito bid when it engineered the departure of BCI executives who favoured the Unicredito merger option.
The boardroom coup at BCI followed a similar coup a fortnight earlier at Generali, the insurance giant where chairman Antoine Bernheim, a senior partner at Lazards, the investment bank, was ousted, in revenge for its apparent treachery in supporting BCI's attempts to extricate itself from Mediobanca's control. Mediobanca had earlier pushed for an agreed merger between BCI and Banca Di Roma. But the talks broke down.
The conflict is particularly bitter because BCI and Generali were the main pillars of a constellation of financial institutions dominated by Mediobanca which held the purse strings for Italy's big industrial power brokers for most of the time since the Second World War.
Over the past few years,Mediobanca's dominance has been challenged by the incursions of the big Wall Street investment banks into its traditional fiefdoms and the fact that Italian corporations are increasingly able to raise finance abroad.
- 1 Emma Watson on Jennifer Lawrence naked photo leak: 'Even worse than seeing women's privacy violated is reading the comments'
- 2 Saudis risk new Muslim division with proposal to move Mohamed’s tomb
- 3 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 4 Cee Lo Green: It is only rape if the victim is conscious
- 5 Nigerian witch-finder Helen Ukpabio threatens legal action against human rights organisations
Perez Hilton apologises for publishing Jennifer Lawrence naked 4Chan photos
Emma Watson on Jennifer Lawrence naked photo leak: 'Even worse than seeing women's privacy violated is reading the comments'
Ariana Grande nude photos leak: Pictures are completely fake, say representatives
Saudis risk new Muslim division with proposal to move Mohamed’s tomb
Kate Upton nude photos leak: Model's spokespeople 'looking into' authenticity of indecent images
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ashya King: 'Cruel NHS has not given us the treatment we need', says father of five-year-old with brain tumour who fled to Spain
iJobs Money & Business
£30000 - £45000 per annum + benefits+bonus+package: Harrington Starr: Front-Of...
£700 per day: Harrington Starr: Quantitative Developer C++, Python, STL, R, PD...
£700 per day: Harrington Starr: Java/Calypso Developer Java, Calypso, J2EE, J...
£500 per day: Harrington Starr: SQL Developer SQL, C#, Stored Procedures, MDX...