Monte Paschi CEO Probe Is Headwind for Mediobanca Deal, BI Says

The legal probe targeting Banca Monte dei Paschi di Siena SpA Chief Executive Officer Luigi Lovaglio is likely to make it harder for the firm to integrate Mediobanca SpA, the rival it recently acquired, according to Bloomberg Intelligence.

The development “adds a new challenge to the two banks’ integration,” BI analyst Lento Tang wrote in a note on Friday. The execution of the merger was already at an “elevated” risk of failing even before the investigation, given their different business models, Tang said.