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