1138 GMT - Monte dei Paschi's governance uncertainty is already priced in as reflected by the significant valuation discount, Deutsche Bank says in a research note. The Italian bank's board did a U-turn by putting forward a board renewal list that didn't include current CEO Luigi Lovaglio after he pulled off the takeover of Mediobanca and outlined plans for its integration in a recent business strategy update. "A new CEO could lead to an overhaul of the recently presented market-friendly plan, potentially resulting in fewer distributions, organic growth, and a greater focus on external growth," analyst Giovanni Razzoli and associate Rishika Garg write. This shift could delay the stock's rerating, they add. The fundamentals of the combined group remain strong and MPS is now better equipped to withstand an uncertain macroeconomic outlook, they note. Shares fall 2%, extending recent losses for the 7th session in a row. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
March 09, 2026 07:39 ET (11:39 GMT)
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