Italian Insurer Cattolica Says Generali Bid Is Fair

   By Ed Frankl 
 

The board of Italian insurer Cattolica Assicurazioni SC said late Tuesday that the EUR6.75-a-share takeover offer from the country's largest insurer, Assicurazioni Generali SpA, was a fair value.

Generali, which on Tuesday initiated a voluntary tender offer for all shares of Cattolica, had launched the bid in May, valued at around 1.18 billion euros ($1.38 billion).

The Trieste-based insurer already has a stake of almost 24% in its smaller rival. Italy's market regulator Consob gave the green light to the takeover offer last week.

The acceptance period will start Oct. 4 and close on Oct. 29, unless otherwise extended, Generali said.

It comes a day after the Generali's management backed a new board slate including the reappointment of Chief Executive Philippe Donnet, who is embroiled in a boardroom battle with major shareholders as he seeks a third term at the top.

Italians Leonardo Del Vecchio, founder of Ray-Ban maker Luxottica, and Francesco Gaetano Caltagirone--who together control nearly 11% of the insurer--have expressed criticism of Mr. Donnet, including over his acquisitions strategy.

Turin-based nonprofit Fondazione CRT earlier this month joined the pact for a "more profitable and effective management" of the company.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

September 29, 2021 02:07 ET (06:07 GMT)

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