The beginning of the weeks came with news from one of the largest European insurance companies
Assicurazioni Generali, or Generali, as it’s commonly known, launched a $1.4 billion offer to buy all shares in another Italian insurer – Societa Cattolica di Assicurazioni SC. Currently, Generali has approx. 24% stake in the company, and it is the main shareholder. The insurer stated earlier today that its offer represents a 15% premium on Societa Cattolica last closing price.
Through this possible acquisition, Generali could "become the first in the non-life insurance market and strengthen its presence in the life market.”
Societa Cattolica is not the first company that Generali is looking to purchase. According to people familiar with the matter, Generali is in exclusive talks to buy non-life insurance businesses in Malaysia from AXA and Affin Bank.
After the news hit the wires, Cattolica stock price jumped as much as 14% in Milan. At the moment of writing, Generali stock price is trading 0.24% higher.
Sources: Bloomberg.com, reuters.com