Cattolica board deems Generali’s takeover offer fair

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MILAN (Businesshala) – Italian insurer Cattolica said on Tuesday that its board believes its takeover offer from major rival Generali is at a fair price.

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Italy’s largest insurer Generali said earlier in May that it would launch a €1.17 billion buyout offer for smaller rival Cattolica to further strengthen its domestic market leadership.

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Generali, which already holds about 24% stake in Catolica, is offering 6.75 euros ($7.91) per share for investors to take full control.

Cattolica shares have consistently traded above the bid price. On Tuesday, Cattolica shares were down 0.14% at 7.15 euros.

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Generali first moved to Cattolica last year, having come to its rescue with an investment of 300 million euros after observers asked the Verona-based insurer to bolster its finances.

The move comes after Generali became the largest investor in Cattolica, slipping Warren Buffett’s Berkshire Hathaway to second place, when one excludes the 12.3% holding held by Cattolica.

This offer will run from October 4 to October 29.

($1 = 0.8537 Euro)

Reporting by Andrea Mandala; Additional reporting by Nishit Jogi in Bengaluru; Editing by Valentina Za, Jane Merriman and Sandra Maler

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