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Monte dei Paschi Rejects Merger

Monte dei Paschi di Siena shareholders have voted to reject a proposal to merge Mediobanca into the banking group. CEO Luigi Lovaglio had advanced the plan, which was defeated by a majority of the votes cast.

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View of the entrance to the headquarters of Monte dei Paschi di Siena (MPS), the oldest bank in the world, which is facing massive layoffs as part of a planned corporate merger, in Siena, Italy, August 11, 2021. REUTERS/Jennifer Lorenzini

BANCA MONTE DEI PASCHI SIENA investors rejected a proposal by CEO Luigi Lovaglio to absorb MEDIOBANCA SPA during Thursday afternoon's voting session, with 63.65% of shareholders voting down the transaction. The rejected proposal marks a major setback for the lender's consolidation strategy in Italy. The scrapped merger would have united Siena's historic institution with the Milanese merchant bank.