Generali mulls deal with US asset manager Guggenheim-Bloomberg

MILAN, Sept 30 (Reuters) – Italian insurer Generali (GASI.MI) has held informal talks with Guggenheim Partners over a range of options, including a full acquisition of the company’s asset management business American investment firm, Bloomberg News reported on Friday, citing sources. .

The options also include a strategic partnership or investment in Guggenheim and are aimed at bolstering the Italian company’s asset management business, according to the report.

Under a plan unveiled in December, Generali had earmarked up to 3 billion euros ($2.9 billion) for mergers and acquisitions in insurance and asset management businesses, citing possible transactions in Europe, Asia and the United States. Read more

A source familiar with the situation told Reuters that Generali had explored several potential U.S. acquisition targets in the asset management sector over the past few months and Guggenheim could be one of them.

Guggenheim Investments, the asset management and investment advisory unit of Guggenheim Partners, has more than $228 billion in assets across fixed income, equity and alternatives strategies, according to its website.

For a deal of this size, Generali might need to divest a core asset like its private bank Banca Generali (BGN.MI), the source said.

A Generali spokesperson said the insurer is continually evaluating potential merger and acquisition opportunities, but no decision has been made as of yet.

“From time to time, we have inquiries and even discussions with third parties who wish to consider joint ventures or who are looking to make capital investments in our business,” the spokesperson said in a mailed statement. electronic.

“We do not comment on these conversations which occur regularly and often more than one at a time.”

According to Bloomberg, the Italian insurer has considered selling Banca Generali to its largest shareholder, Mediobanca (MDBI.MI), to help fund a potential deal with Guggenheim.

The source told Reuters there are no active discussions between Generali and Mediobanca over Banca Generali at this time.

Mediobanca had studied a bid for Banca Generali in 2020 and approached Generali, but then quickly abandoned the plan due to the COVID crisis, sources told Reuters at the time.

Banca Generali shares rose 19% while Mediobanca rose more than 6% after the report. Generali shares are trading down 1.9%.

The Bloomberg report said considerations with Guggenheim were at an early stage with intermittent discussions, and added that Generali may also end up pursuing another US asset management goal.

($1 = 1.0205 euros)

Reporting by Gianluca Semeraro in Milan, Saeed Azhar in New York, Lavanya Ahire in Bengaluru; edited by Uttaresh.V, Shinjini Ganguli and Richard Chang

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