MILAN (Reuters) -Italy’s top insurer Generali said on Wednesday it would continue to assess Mediobanca’s bid to buy Banca Generali, as well as a revised distribution agreement with the private bank which is a key part of the offer.
“Generali confirms its intention to pursue the evaluation of the offer and discussions on these matters,” it said in a statement.
Mediobanca’s bid for Banca Generali is one of a dozen takeover offers reshaping Italian finance. Mediobanca proposed in April acquiring Banca Generali, whose main shareholder is Generali with a 50.2% stake, to gain in size and ward off a hostile takeover from Monte dei Paschi di Siena.
Generali posted a first-half adjusted net profit of 2.2 billion euros ($2.6 billion), up 10.4% year-on-year, and an operating profit of 4 billion euros, up 8.7%. Both figures are broadly in line with a company-provided analyst consensus.
Generali will launch a share buyback worth 500 million euros on Thursday, and complete it by the end of the year, it said.
Mediobanca plans to pay for Banca Generali through its 13% stake in Generali, severing a historic tie with the insurer to seal a commercial partnership.
It has conditioned the offer to an accord with the insurer to distribute insurance and asset management products.
In an attempt to speed up the Banca Generali deal as it fights Monte dei Paschi’s bid, Mediobanca said last week it had sent Generali a proposal to begin talks on the distribution agreement.
After being forced to delay a shareholder vote on the Banca Generali acquisition for fear of lacking sufficient support, Mediobanca last week said it now aimed to hold the vote on August 21.
It expects to receive the necessary regulatory approval by August 18, allowing it to launch the bid for Banca Generali before the MPS offer concludes on September 8.
($1 = 0.8620 euros)
(Reporting by Gianluca Semeraro; Editing by Valentina Za)
