Athene, MassMutual End $3 Billion Bid to Buy American Equity
October 19 2020 - 10:54AM
Dow Jones News
By Dave Sebastian
Athene Holding Ltd. said it has ended its bid with Massachusetts
Mutual Life Insurance Co. to buy American Equity Investment Life
Holding Co. for about $3 billion after American Equity rejected the
offer and reached a partnership with Brookfield Asset Management
Inc.
"Since the board of directors of American Equity has decided to
reject our joint proposal, we will continue with the execution of
our standalone strategy," Athene said Monday.
Shares of American equity fell 12.5%, to $28.25. Athene shares
rose 0.6%, to $35.50. Brookfield shares rose 1%, to 44.93 Canadian
dollars ($34.13).
The proposed deal bet that the small Iowa insurer's
retirement-income products will continue to be popular with
conservative voters. Under the proposed combination, MassMutual
would acquire American Equity's insurance subsidiaries and all of
its employees, brands and distribution agreements. MassMutual would
reinsure 80% of American's existing business to Athene and retain
the remaining 20%.
Brookfield will receive one seat on American Equity's board,
according to the agreement disclosed on Sunday. American Equity
said it had been in discussions with Brookfield since March. The
deal, American Equity said, would give it access to Brookfield's
higher-returning alternative asset strategies, which are
particularly important given the low-interest rate environment.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
October 19, 2020 10:39 ET (14:39 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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