Shares in Italian insurer Assicurazioni Generali SpA have soared after rumors of potential takeover bids emerged, but Generali has denied knowledge of any planned bids.
The insurer’s shares rose by more than 3%, buoyed by rumors suggesting that insurance giant American International Group (AIG) and Dutch insurer Aegon could be interested in putting forward a bid for the company. Aviva has also been named as a potential bidder.
AIG emerged as a likely candidate as Generali would be an easy target to help the company expand in Europe, where Generali has carved a decent slice of the market for itself.
However, Generali has stated that it is not aware of any planned bids.
In addition, it seems industry opinion on the matter is divided. I think this is nonsense. The idea that the Italian establishment is going to let Generali fall into the hands of a foreigner is implausible, a London-based insurance analyst at an investment bank told Reuters.