Milan prosecutors are investigating the Italian government’s sale of a 15% stake in Monte dei Paschi di Siena to a select group of investors, two sources with knowledge of the matter said, reported Reuters.

This sale, which took place last November, was conducted through an accelerated bookbuilding (ABB) process.

The specific aspects of the ABB process under investigation have not been disclosed by the sources.

During the probe, police collected documents from the offices of Banca Akros, the broker responsible for the ABB process.

The Italian Treasury had aimed to establish a stable base of domestic shareholders for Monte dei Paschi, which it had bailed out in 2017 and was in the process of privatising.

Banco BPM picked a 5% stake, while fund manager Anima Holding took 3%.

Construction magnate Francesco Gaetano Caltagirone and the holding company of the late Ray-Ban owner Leonardo Del Vecchio each secured 3.5% of the Tuscan bank.

Notably, Banca Akros is an investment banking division of Banco BPM. Although police requested documents from Banca Akros, the broker itself is not the subject of the investigation.

In response to the probe, Banca Akros stated, “conducted the process correctly and transparently,” adhering to all relevant regulations and standards.

Delfin has not provided a comment, and a representative for Caltagirone declined to comment.

Following a report by the Financial Times in December, which suggested that UniCredit had been unable to purchase a ten percent stake in Monte dei Paschi during the placement, Banca Akros defended its conduct, stating that the placement adhered to the rules and practices for such operations.

The Italian Economy Ministry has rejected claims of any wrongdoing, asserting that the sale was executed “impeccably” and “transparently,” and at a premium to market prices, benefiting taxpayers.

This sale diverged from the norm by involving fewer investors, whereas similar placements typically attract more bidders and offer a discount. In the past, the Treasury’s placements of Monte dei Paschi shares had attracted numerous foreign funds as investors.

Since the November placement, both Caltagirone and Delfin have increased their stakes in Monte dei Paschi, becoming its top shareholders.

The transaction has initiated a wave of mergers and acquisitions within Italy’s banking sector, leading to significant changes.

UniCredit has made a bid for Banco BPM, which has faced government opposition, while Banco BPM has acquired Anima. Additionally, Monte dei Paschi has made an offer for Mediobanca, which in turn has bid for Banca Generali.