Paschi CEO Lovaglio Faces Probe After His Mediobanca Deal (2)

Banca Monte dei Paschi di Siena SpA Chief Executive Officer Luigi Lovaglio is under investigation shortly after his takeover of rival Mediobanca SpA, a transformational deal that turned Monte Paschi into Italy’s third-biggest bank.

Lovaglio has been notified he is being probed for alleged market manipulation and obstructing regulators, Monte Paschi said in a statement on Thursday. It also said it received a search order from Milan prosecutors.

“The bank is confident it can provide all the necessary information to clarify the correctness of its actions and expresses its full trust in the competent authorities, with whom it confirms ...