Mediobanca CEO Steps Down After Acquisition

Following the surprising success of Monte dei Paschi di Siena’s (MPS) takeover of Mediobanca, Italy’s leading investment bank, Mediobanca CEO Alberto Nagel announced his resignation last month after 17 years at the helm of the group, ending one of the longest tenures of a European banking executive.

Earlier this year, MPS, the world’s oldest lender, shocked markets by launching a €16 billion hostile bid for Mediobanca, in cash and shares. The deal closed last month with 86% of shares committed – an extraordinary result for an acquisition proposal that initially left many incredulous. Founded in 1946 by the “great strategist of Italian capitalism”, Enrico Cuccia, Mediobanca has for decades been “the engine of Italian finance”, constantly exerting influence on the country’s economic landscape. Conversely, until recently, MPS was known for its financial instability, which led to multiple state bailouts. In 2011, Italy paid 6 billion euros (about $7.04 billion) to save the bank. The Italian government now owns around 6% of MPS.

In keeping with Mediobanca culture and tradition, Nagel was a powerful but reserved leader. He led the bank through the 2008-09 global financial crisis, avoiding public attention and rarely granting interviews. He spent his entire career with the bank, starting in 1991 and gradually assuming increasing responsibilities, until his appointment as CEO in 2008.

In a farewell letter to colleagues, Nagel described his time at the firm as an “extraordinary journey of growth and renewal”, highlighting Mediobanca’s emergence as “a true public company” and its record of distributing €8.5 billion to stakeholders with a total return of over 500% without ever resorting to a capital increase.

In recent years, Nagel’s leadership has drawn criticism from two of Mediobanca’s biggest shareholders – Delfin, the holding company of the late Luxottica tycoon Leonardo Del Vecchio, and billionaire Francesco Gaetano Caltagirone – who together played a decisive role in the buyout that ultimately led to his ouster.

“The independence of Mediobanca has always been taken for granted,” observes Paola Biraschi, managing director and bank credit analyst at CreditSights in London. “When MPS came forward, it was expected that the takeover plan would fail. Perhaps MPS’s strategic plan and the support of major shareholders, including Delfin, Caltagirone and the Italian Treasury, had been underestimated.”

Amid rumors of a possible delisting of Mediobanca, the search for a new CEO is now on.