Stock Futures – CORRECTED-Shares in UniCredit down 4.5% hit by issues over CEO’s future

(Corrects measurement of low cost in fifth paragraph)

MILAN, Nov 30 (Reuters) – Shares in Italy’s UniCredit fell 4.5% on Monday hit by issues about the way forward for Chief Govt Jean Pierre Mustier, whose mandate ends within the spring.

Administrators at Italy’s no.2 bank held casual discussions on Sunday forward of kicking off this week the method to pick out nominees for the renewal of the board in April 2021.

Folks aware of matter have mentioned friction over technique inside the bank has referred to as into query whether or not Mustier will stay on the helm.

The 59-year-old former funding banker arrived in mid-2016 to repair UniCredit’s capital woes. He presided over a turnaround, cleansing up the steadiness sheet and elevating tens of billions of euros from share and asset gross sales.

He has failed nonetheless to carry the price of the shares, which commerce at a 60% low cost to UniCredit’s e-book value. A plan to return cash to shareholders has been derailed by the pandemic which triggered a supervisory ban on dividends.

Following fruitless makes an attempt to strike a cross-border merger, Mustier has vowed to remain out of consolidation, whilst matchmaking in Italy’s fragmented banking sector intensifies.

Authorities efforts to discover a purchaser for bailed-out Monte dei Paschi have change into the newest flashpoint, sources have mentioned, as a result of UniCredit had been recognized as the best associate as a consequence of its sturdy steadiness sheet.

Shares in Monte dei Paschi rose 6% on Monday lifted by expectations {that a} potential Mustier departure would clear the trail to an acquisition.

Mustier’s “no M&A” stance is out of step with rising merger exercise in southern Europe following Intesa Sanpaolo’s shock takeover of UBI this summer time.

Credit score Agricole final week introduced a buyout provide for third-tier Italian lender Creval.

In the meantime Banco BPM, which firstly of summer time held contacts with UniCredit over a possible tie-up, has welcomed merger overtures by the highest investor in BPER Banca . ($1 = 0.8351 euros) (Reporting by Valentina Za; Modifying by Simon Cameron-Moore)