MILAN, Sept 19 (Reuters) - An agreement among shareholders in Italian merchant bank Mediobanca has no reason to exist, a board member said on Thursday, referring to the governance accord that locks up control of the lender and protects it from a hostile takeover.
“At this moment in history, shareholder pacts...have no reason to exit,” Carlo Pesenti, who sits on the bank’s board and is a member of the pact, said. “Including Mediobanca‘s.”
He is also chairman of Italcementi, a Mediobanca shareholder with 2.6 percent.
Shareholder pacts have been widely used in Italy for decades, since they enable small groups of people to wield control over listed companies including Mediobanca, Telecom Italia, Pirelli and RCS Mediagroup . They are now falling out of favor as groups struggle to improve profitability in a recession. (Reporting by Andrea Mandala’, writing by Jennifer Clark, editing by Valentina Za)