By Ed Frankl

 

Assicurazioni Generali SpA has secured around 54% in its bid to take over Cattolica Assicurazioni SC, according to a source familiar with the matter.

It means Italy's largest insurer has reached the minimum threshold of its 6.75-euro-a-share ($7.85) bid for its smaller rival, which values the latter at around EUR1.59 billion.

The news comes a day before the acceptance period for the offer is due to close, on Oct. 29.

Investors tendered the equivalent of slightly more than 30% of Cattolica's outstanding share capital up until the end of trading on Thursday, according to Borsa Italiana data.

The company intends to proceed with a full takeover and is still looking to secure all remaining shares, the source said.

Milan-listed Cattolica closed at EUR6.76, down 0.2%. Generali shares closed up 0.5%.

Generali controlled 24% of Cattolica ahead of its takeover offer.

The remaining shares beyond Generali's stake as part of the bid are valued at about EUR1.18 billion at the price of Generali's offer.

Last week, Warren Buffett's Berkshire Hathaway Inc. tendered its 6.9% stake in Cattolica.

 

Write to Ed Frankl at edward.frankl@dowjones.com

 

(END) Dow Jones Newswires

October 28, 2021 13:26 ET (17:26 GMT)

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