Carige poised to poach Pop Milano's Montani as CEO-source
MILAN Oct 27 (Reuters) - Piero Montani, boss of Banca Popolare di Milano is likely to become the chief executive of struggling Genoa-based lender Carige and may be appointed as soon as Tuesday, a source with direct knowledge of the situation said.
Carige, considered by analysts one of Italy's weakest listed lenders, is trying to push through an 800 million euro ($1.1 billion) recapitalisation plan.
The bank, controlled by a charitable banking foundation which has strong ties with the city of Genoa, has also been at the centre of a management clash that led to the replacement last month of former Chairman Giovanni Berneschi after more than 20 years in the job.
Montani, who has been approached by new Carige Chairman Cesare Castelbarco Albani, could be named during a board meeting scheduled for Tuesday.
"If some final details are sorted out, the chairman could change the board agenda already on Monday to allow a discussion of the new CEO on Tuesday," the source said, adding that Carige was in talks with Montani.
Montani, 59, has spent the last two years shoring up Lombardy-based Pop Milano. Between 2003 and 2008, he was the CEO of Banca Antonveneta, which was bought in quick succession by Dutch lender ABN AMRO, Spanish bank Santander and eventually Banca Monte dei Paschi di Siena.
Montani will take over the functions of current Director General Ennio La Monica.
Carige declined to comment. Pop Milano could not immediately be reached for comment.
Italy's 10th-biggest lender is trying to avoid a capital increase that would dilute the foundation's 47 percent stake and has secured 100 million euros from asset sales so far.
With a Core Tier 1 capital adequacy ratio of 6.2 percent, Carige is below the floor set by the ECB in its planned review.
Earlier this month, Carige appointed a new chairman and board after the Bank of Italy called for a more robust turnaround plan.
The central bank had raised objections about Carige's accounting and evaluation practices and said an 800 million euro capital injection might not be enough to restore its financial health. ($1 = 0.7250 euros) (Reporting By Lisa Jucca; editing by Jane Baird)
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