Italian governance under the microscope

We are currently seeing an interesting tustle in Italian banking. A couple of non-Italian European banks with stakes in Italian banks have expressed an interest in outright acquisitions.

The Italian Central Bank Governor continues with his obvious reluctance to allow non-Italian banks to do so (he has stopped and dissuaded enough attempts to make it obvious, despite his protestations). Although, given the recent declarations from the European Commission that they want to see more open financial systems in European countries for European banks, and Italy being specifically mentioned, it will be interesting to see what happens.

The obvious solution for Antonio Fazio would be to encourage one or various Italian banks or companies (let us call this the French approach) to come up with a competing bid. Fazio will take care of finding ways to delay the 'foreign' bids and ensure a clear run for the 'locals'.

This is the time for the Directors, particularly the Independants (if they exist) of the banks and companies that are being dragged into this by Fazio, to ensure that they work for their shareholders and not destroy value, just to satisfy the nationalistic sensitivities of the Italian Central Bank Governor.

We are watching!

OAM

Related links:
Italy Investors Close Ranks Against Foreign Banks
Memo to Internal Market Commissioner Charlie McCreevy
Capitalia Says No Capital Hike for ABN's Italy Bid
Dutch Bank NIB Mulls Both IPO and Merger