Generali seals Cattolica deal to boost Italian market lead

  • 10/29/2021
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MILAN (Reuters) -Italy’s top insurer Generali sealed its 1.17 billion euro ($1.36 billion) takeover of smaller rival Cattolica on Friday in a move aimed at cementing its domestic market leadership. On the last day of Generali’s buyout offer, investors had tendered shares equivalent to 60.8% of Cattolica’s capital, bourse data showed. Along with the shares it already owned, Generali now holds a stake of 84.5% in Cattolica. Generali crossed the majority threshold on Thursday but a two-thirds majority was needed to push through extraordinary shareholder resolutions such as the decision to take Cattolica private and merge it into the group - as Generali plans to do. Generali first moved on Cattolica last year, coming to its rescue with a 300 million euro investment after supervisors told the Verona-based insurer to bolster its finances. Trieste-based Generali offered 6.75 euros for each Cattolica share tendered, a price deemed fair by Cattolica’s board. Shares in Cattolica, which until recently traded above the bid’s price, closed at 6.58 euros on Friday. ($1 = 0.8624 euros) Reporting by Andrea Mandalà Editing by Mark Potter

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