1/24/2017, 9:57 AM (Source: TeleTrader)
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Generali soars after buying 3% of Intesa to fend off bid

Intesa Sanpaolo SpA dipped 3.59% to €2.312 and Assicurazioni Generali SpA was catapulted 8.77% to €15.5 in Milan at 9:40 am CET on Tuesday as the lender's perceived attempt to buy a stake in the insurance operator was met by a counterpurchase of just above 3%. The acquisition means the quota was reached to prevent the bank to reach voting rights of more than 3% even if it controls more shares, according to national regulation.

La Stampa reported on January 20 that Intesa was eyeing a stake in the Trieste-based company, with Allianz as a potential partner. Generali revealed its investment yesterday. If the lender eventually does buy more than 3% in the insurance company, it will also be obligated to divest the difference in ownership within one year. Now the stakes are much higher, as Intesa would need to bid for a minimum 60%.

Baha Breaking News (BBN) / IT