Generali does some timely pandemic shopping
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Summary:
The Generali logo is seen in Budapest, Hungary, November 29, 2019. REUTERS/Tamas Kaszas
Assicurazioni Generali (GASI.MI) is doing some well-timed pandemic M&A. The 27 billion euro Italian insurer launched on Monday a 1.2 billion buyout of smaller domestic rival Cattolica (CASS.MI), in which it bought a 24% stake last year. Generali’s cash bid of 6.75 euros a share is 40.5% higher than Cattolica’s six-month average stock price weighed by traded volumes . But it still looks like a steal. Shares in Cattolica, which counts Warren Buffet as one of its top investors, have been declining since hitting a peak of around 27 euros before the global financial crisis, and were higher than Generali’s bid price before Covid-19.
The deal, which values Cattolica’s equity at 1.5 billion euros and comes ...
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