Potential sale of Monte Paschi to UniCredit "inappropriate" with Padoan as chairman - 5-Star

MILAN, Oct 15 (Reuters) - A sale of Banca Monte dei Paschi to UniCredit would be inappropriate after UniCredit announced it would appoint former Economy Minister Pier Carlo Padoan as chairman, lawmakers from Italy’s ruling 5-Star Movement said.

Padoan oversaw the bailout of Italy’s oldest bank, Monte dei Paschi, back in 2017, with Rome spending 5.4 billion euros ($6.31 billion) on a 68% stake. Under an agreement with European Union authorities, the stake must be sold by mid-2022.

“It would be paradoxical if, after the public commitment that provided for a support of several billion euros ... today there was a possible sale of MPS to UniCredit with Padoan in the role of chairman,” the 5-Star lawmakers wrote in a note.

UniCredit, long seen as the best candidate to take over ailing Monte dei Paschi, said on Tuesday it would appoint Padoan as chairman when it renews the board next spring, in a choice that fueled speculation over a possible tie-up between the two lenders. ($1 = 0.8555 euros) (Reporting by Giuseppe Fonte, writing by Agnieszka Flak)