UniCredit strategies under threat with chief executive's exit

Italy's biggest bank UniCredit SpA is adrift and its strategy at risk from political interference after the resignation of its high-flying chief executive in a power clash with shareholders.
The departure of Alessandro Profumo, Europe's longest-serving bank CEO, means UniCredit is rudderless as it struggles to recover from the financial crisis and make a success of a string of acquisitions, analysts and fund managers said.
His exit under fire from politically linked shareholder foundations raises the prospect that UniCredit, previously seen as Italy's least politicised bank, could face more interference from local power brokers, thus damaging its appeal to investors, they said.
"If the market were to have the feeling that the bank has political pressure at its back, I think the market would take it negatively," said Alessandro Frigerio, a fund manager with RMJ Sgr in Milan.
With Profumo gone, a first casualty could be Profumo's Banca Unica plan to streamline Italian operations by folding seven regional banks into its main unit.
Banca Unica angered the foundations, many of whose board members are appointed by local political leaders, since it would cut 4,700 jobs at a saving of 300 million euros. Profumo designed it to help revive UniCredit's lagging performance as Italy recovers from its worst recession since World War Two.
"Whether Banca Unica is still on track, whether the synergies will still come through, that is another point of debate," said a London-based analyst who spoke on condition of anonymity.
Deputy Chief Executive Roberto Nicastro, the head of UniCredit's retail operations, said Banca Unica remained "highly strategic" for the bank. "Banca Unica is going ahead at maximum speed and acceleration," he told reporters at a meeting of the Italian Banking Association.
While UniCredit's units in Russia, Turkey and Poland are performing well, a new boss could look at cutting losses by shedding some of its more daring acquisitions.
Profumo led UniCredit's rise to become the biggest lender in emerging Europe, serving retail and business customers in 4,000 branches from the Adriatic Sea to Siberia.