Strategy
UniCredit To Convene EGM On Reorganisation Plans

The strategic committee of UniCredit, the Italian banking group, has called on its board of directors to convene an extraordinary board meeting on a far-reaching reorganisation project. A statement on the decision was issued yesterday afternoon following reports that UniCredit’s chief executive was threatening to resign in a boardroom stand-off over plans to appoint a general manager to oversee him ahead of the reorganisation.
The statement said that the strategic committee is supporting the reorganisation project, called One4C (One For Client), and had recommended that an EGM take place on 13 April for further discussion and a final decision to be made. "We simply need more time to deal with the project. I think this is the best solution for the bank," said Dieter Rampl, chairman of the board.
Reports yesterday said that chief executive Alessandro Profumo was threatening to quit in protest against plans to appoint a general manager who would oversee him; Cassamarca, the Italian banking foundation, has said that four foundations which together hold 11.5 per cent of UniCredit want to have more input into how Profumo runs the bank. Two of the foundations – CRT and CariVerona – reportedly want to put off the bank’s reorganisation plans until a general manager is in place.
As reported by WealthBriefing in November of last year, UniCredit is looking to integrate the operations of a number of units – including private banking – into the group holding as part of a long-held desire to streamline its operations in Italy.
This is Profumo’s second clash with UniCredit’s board in less than twelve months, as he reportedly threatened resignation last year unless shareholder support was secured for a €4 billion ($5.5 billion) capital increase.