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Bloomberg
Assicurazioni Generali SpA offered to buy Italian insurer Societa Cattolica di Assicurazioni SC in a deal valuing the smaller rival at 1.5 billion euros ($1.4 billion).
Generali, which already has a stake of about 24% in the company, is offering investors 6.75 euros per Cattolica share in an all cash deal, the insurer said in a statement. The offer represents a 15% premium on the last closing price, it said.
“The offer is promoted by Generali with the aim of consolidating its position in the Italian insurance market,†the insurer said in the statement. “The acquisition would allow Generali to become the first in the non-life insurance market and to strengthen its presence in the life market.â€
Cattolica is a cooperative insurance company with a market capitalisation of almost 1.4 billion euros. The firm agreed to convert to a joint stock company in July, and planned to raise 500 million euros. Assicurazioni Generali subscribed to 300 million euros, becoming the main shareholder in October.