Mediobanca To Open London Operation

by Stewart Douglas

Story link: Mediobanca To Open London Operation

Italian investment banking group Mediobanca have today announced they intend to establish a London based branch in a bid to gain access to derivatives and capital markets within the UK, according to sources from within the bank itself.

The move will see the Italian investment banking giant take its first steps into the UK investment market, alongside the major firms currently handling portfolios of UK assets by setting up a base in London from which to target core domestic investment opportunities.

The London office will bring experience from within the current Mediobanca structure, whilst also drawing on the expertise of Paolo Cuniberti.  Cuniberti was formerly within JP Morgan as a managing director, with specialisms in management of credit market and derivative investments to make him the ideal candidate for the post at the London office.

The move follows Mediobanca’s growth into several other key European markets, with bases established in Frankfurt, Paris and Madrid in Spain to allow localised access to financial markets.  The establishment of a London base would likely be seen as another significant step in pursuing its corporate growth strategy.

The London branch is expected to be opened early in 2008, with Mediobanca continuing to look for growth channels throughout the European continent for diverse investment management across markets.

Mediobanca has been fortunate to escape much of the impact of the credit crunch and market turbulence on its investments, and has bucked the general trend in reporting bumper dividend payouts and even a buyback of equity from the market.

It is thought to be considering continuing expansion throughout Europe towards the end of the decade, by which time it has set targets for reach and distribution of investment management centers, off the back of its strong health during the sub-prime aftermath.