Two U.S. funds to vote Mediobanca outgoing board’s slate for board renewal

MILAN (Reuters) – The U.S. funds CalSTRS and New York City Comptroller said on Thursday they would vote in favour of the outgoing board’s slate of nominees for the new Mediobanca (OTC:) board at the bank’s annual meeting this month.

Mediobanca’s outgoing board has proposed 15 members, including a new term for current CEO Alberto Nagel and Chairman Renato Pagliaro ahead of the Oct. 28 meeting.

The two funds did not disclose their stakes in Mediobanca.

Delfin, the holding company of the late Italian billionaire Leonardo Del Vecchio and the main investor in the bank with a 19.7% stake, submitted its own list of candidates.

While it does not pose a direct challenge to either Nagel or Pagliaro, its decision to put forward its own nominees increases uncertainty in the short term and could lead to a fractured board, analysts have said.

Del Vecchio, who died last year at the age of 87, had criticised Nagel for failing to grow the investment bank’s business decisively and hampering expansion at insurer Generali (BIT:), in which Mediobanca is the main shareholder.

Proxy adviser Institutional Shareholder Services (ISS), Glass Lewis and Pensions & Investment Research Consultants (PIRC) said last week they were recommending Mediobanca investors vote in favour of the outgoing board’s slate of nominees.