Italian Insurer Cattolica Says Its Board Views Generali Takeover Offer as Fair

Italian insurer Cattolica said on Tuesday that its board considers that bigger rival Generali’s takeover offer for it is at a fair price.

Generali, Italy’s largest insurer, earlier in May said it would launch a 1.17 billion euro [$1.4 billion] buyout offer for smaller rival Cattolica to further strengthen its domestic market leadership.

Generali, which already holds a stake of almost 24% in Cattolica, is offering investors 6.75 euros ($7.91) a share to take full control.

Shares in Cattolica have consistently traded above the bid’s price. On Tuesday Cattolica shares were down 0.14% at 7.15 euros.

Generali first moved on Cattolica last year, coming to its rescue with a 300 million euro [$351.4 million] investment after supervisors told the Verona-based insurer to bolster its finances.

Following the move Generali became the single largest investor in Cattolica, relegating Warren Buffett’s Berkshire Hathaway to second place when one excludes a 12.3% holding held by Cattolica itself.

The offer will run from Oct. 4 to Oct. 29.

($1 = 0.8537 euros)

(Reporting by Andrea Mandala; additional reporting by Nishit Jogi in Bengaluru; editing by Valentina Za, Jane Merriman and Sandra Maler)