Investing.com -- Banca Monte dei Paschi di Siena SpA’s CEO, Luigi Lovaglio, has received the green light from shareholders for his proposed bid for rival bank, Mediobanca (OTC: MDIBY ) SpA.
In a meeting held on Thursday, about 87% of the bank’s investors approved a motion that permits Lovaglio to issue new Monte Paschi shares to fund the deal. This approval was contingent on receiving support from at least two-thirds of the voting rights represented at the meeting.
This outcome paves the way for Lovaglio to proceed with the bank’s largest acquisition since a misjudged deal nearly 20 years ago led to years of instability for the world’s oldest bank.
Monte Paschi, recognized as the world’s oldest bank still in operation, has recently recovered from years of extensive restructuring. Following this restructuring, the bank has witnessed a swift improvement in its performance.
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