Bloomberg News

Paschi Rises on Speculation Profumo to Be Appointed: Milan Mover

February 22, 2012

Feb. 22 (Bloomberg) -- Banca Monte dei Paschi di Siena SpA rose for a sixth straight session in Milan amid speculation that Alessandro Profumo may be named as chairman of Italy’s third- biggest bank.

The shares rose as much as 8.1 percent, leading gains on the European Stoxx 600 Banks Index, to their highest price since Oct. 12. Siena, Italy-based Monte Paschi traded at 41.5 cents, up 5.6 percent, at 11:30 a.m., giving the bank a market value of 4.8 billion euros ($6.3 billion). The shares have advanced 36 percent in the past six days.

Profumo, former chief executive officer of UniCredit SpA, Italy’s biggest bank, is the top candidate to become Monte Paschi chairman, Corriere della Sera said, without saying where it got the information. Carlo Salvatori, chairman of Lazard Ltd. in Italy, is also in the running for the job, the daily reported today.

“We remain positive on Monte Paschi due to the growing perception of improved governance,” Fabrizio Bernardi, a banking analyst at Fidentiis Equities in Milan, said in a note today. The brokerage has a “buy” recommendation on the stock.

Monte Paschi Chairman Giuseppe Mussari said last month he won’t run for a second term after his mandate expires in April.

--Editors: Jeffrey Donovan, Dylan Griffiths

To contact the reporters on this story: Sonia Sirletti in Milan at ssirletti@bloomberg.net Francesca Cinelli in Milan at fcinelli@bloomberg.net

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net James Ludden at jludden@bloomberg.net


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