Ras savers hold Allianz to ransom 29 Sep 2005 Owners of the Italian insurance group's savings shares have exploited a legal loophole to get a huge price for their shares. This windfall has sparked interest in other Italian savings shares. But not everyone will be able to pull off the same trick as Ras.
Trygvesta’s E2bn IPO looks deceptively cheap 27 Sep 2005 The price range for the biggest insurance float since Toro has the Danish general insurer being sold on a lowly earnings multiple. That looks designed to tease in investors from outside Denmark. They should note that the pricetobook ratio looks less favourable.
Skandia board split in rejecting Old Mutual 23 Sep 2005 A majority say no, but a minority says yes. Meanwhile, an independent fairness opinion gives the bid the thumbs up. It feels as if the majority doesn't want the odium of selling a Swedish national institution. Old Mutual is rightly pressing on.
Skandia reveals internal differences over strategy 15 Sep 2005 The Swedish insurer has published secret business plans provided to its suitor Old Mutual as part of due diligence. It has also been forced to acknowledge management doubts over its ability to execute its strategy. That plays into Old Mutual's hands.
Allianz pioneers new form of M&A financing 12 Sep 2005 The German insurer is raising all the equity it needs to fund its potential cash offer for RAS. But it has devised a way of scaling back the fundraising if RAS investors decline the cash offer it s shorting its own stock.
Allianz deal shines spotlight on Generali 12 Sep 2005 The market is speculating that the Italian insurer might "do an Allianz" and buy out minority investors in its subsidiary Alleanza. The industrial case looks weak. But there are still some intriguing reasons why a buyout may eventually be an interesting option.
Skandia board split on Old Mutual approach 8 Sep 2005 It s not hard to see why it is struggling to give a recommendation. Patriotic feelings towards the Swedish insurance company run high. But it is hard to see shareholders backing a standalone strategy. And there are no alternative offers. The board should recommend.
KKR leaves investors fuming over Alea debacle 2 Sep 2005 The private equity firm sold the insurer s shares in London two years ago with the help of hedge funds tempted by an unambitious valuation. But Alea keeps having to top up its reserves. Had it listed in the US, KKR and its advisers would probably be facing shareholder litigation.
Old Mutual bids E4.8bn for Skandia 2 Sep 2005 The South African insurer s offer is dependent on a recommendation from its Swedish counterpart within three weeks. To dismiss it, Skandia will have to show that Old Mutual has undercooked the synergies it s proposing to justify the price.
Old Mutual tries to bear hug Skandia 30 Aug 2005 The South African insurer isn t showering Skandia s reluctant board with cash. Its SKr42 (E4.50) a share bid is hardly a knockout blow. It seems to be hoping that Skandia s investors and a lack of alternatives will force the board to agree to a deal.
Aviva sounds bum note on UK life market 11 Aug 2005 The UK insurance market leader sees weak growth in its home turf this year. It also faces increasing competition. The result? Scale and diversification matter more than ever. Small wonder Aviva is signalling more M&A.
Old Mutual tries to lean on Skandia 10 Aug 2005 The South African insurer has used strong interims to talk up its organic prospects. The implication? A deal with Skandia isn't a musthave. That's probably a bit of a bluff: Skandia is a great fit strategically. But Old Mutual doesn't want to overpay.
Skandia should get Old Mutual on the hook 12 Jul 2005 By pursuing a breakup alongside a full sale, the Swedish insurer has teased a tentative, but realistic, offer from its South African rival. But if Skandia lets Old Mutual slip away, it then may find that a breakup generates less value than was potentially available.
Another tiny white knight emerges in Italy 1 Jul 2005 Lodi has already bid for Antonveneta, a relative giant. Now Italian insurer Unipol may bid for BNL, a bank three times its size. Trouble is, that could scupper Unipol s solvency capital. And, unlike Lodi and Antonveneta, this deal wouldn t make much industrial sense.
Offers roll in for all and parts of Skandia 21 Jun 2005 Old Mutual s talks for the Swedish insurer have generated broad interest from trade buyers. Skandia now has options including a fullblown sale or a breakup. Old Mutual s ambitions of grabbing it on the cheap may be in trouble.
Resolution goes public in Britannic merger 9 Jun 2005 The closed lifefund consolidators have few other options right now there is a sellers strike among the funds they might buy. This £2bn merger makes sense financially and strategically. The snag is that it appears to have two ambitious chief executives.
Toro’s E2bn IPO won’t make De Agostini rich 18 May 2005 The publishing group would have almost done better had it just told its broker to buy a portfolio of insurance stocks. That's partly because it hasn't turned Toro round. And partly because Fiat extracted too fat a premium when it sold.
Old Mutual mulls £3.5bn bid for Skandia 13 May 2005 This marks a change of strategy for the South African financial services group, which hoped to build its UK business by buying closed funds. But it was unable to compete with highly leveraged bid vehicles such as Resolution. A bid for the troubled life assurer may be its best bet.
Ouster of Pru’s Bloomer looks cack-handed 3 May 2005 It seems Pru's chairman Clementi backed away from ousting his CEO, despite sounding out successors in February. He later fired him anyway. Bloomer had to go after making too many uturns. But Clementi looks like just as much of a flipflopper.
Prudential in double irony 18 Apr 2005 This Wednesday s results would have been a big day for ousted chief Bloomer, providing evidence to justify his controversial rights issue. Not only will Bloomer be out of the frame. But the front man will be a director who lost out to an old rival in Bloomer s succession.