UniCredit hardens stance on Mediobanca governance

MILAN, Sept 2 (Reuters) - The head of UniCredit (CRDI.MI) has hardened his position on merchant bank Mediobanca's (MDBI.MI) governance, saying his bank would vote against any proposed changes that would reduce management's role.

The Italian bank is Mediobanca's top shareholder and it wants the merchant bank's managers involved in any changes to its two-board structure.

Its position was reinforced on Monday when UniCredit's chairman, Dieter Rampl, came out with a statement after a strategic committee meeting expressing support for its chief executive, Alessandro Profumo.

Profumo's position puts him at odds with Cesare Geronzi, the head of Mediobanca's supervisory board who wants to scrap the two-board structure to reduce management's influence.

Mediobanca replaced its single-board structure last year to separate management from its biggest shareholders, many of which are banks.

"For us it is crucial that management is involved in the solution to be found," Profumo was quoted by La Repubblica as saying on Tuesday. "If this is not the method to be used, then we would not have any problem voting against it."

Once the proposed changes are reviewed by Mediobanca's management board on Sept. 18, they will go to the supervisory board, chaired by Geronzi.

They will then be put to a vote at a shareholders meeting on Oct. 28.

In an interview with Corriere della Sera on Tuesday, Profumo said he was willing to let the Sept. 18 deadline pass if no agreement had been reached.

"If by that date there is an agreement on the proposal for management, UniCredit will give its approval. Otherwise, more time will be needed to discuss it," he said. (Reporting by Gilles Castonguay; Editing by Jason Neely)