By Gilles Castonguay
MILAN--Italy's biggest insurer, Assicurazioni Generali SpA
(G.MI), said Wednesday said it is selling shares representing up to
12% of asset management unit Banca Generali SpA (BGN.MI), as part
of its strategy to improve its solvency ratio, or its ability to
meet obligations.
Generali said in a statement it was offering up to 13.7 million
ordinary shares to institutional investors, with the final terms to
be set through an accelerated bookbuilding process.
"The operation...will enable Generali to optimize its capital
allocation with an improvement of its Solvency I ratio," it said.
At the end of 2012, its Solvency I ratio was 150%, against 117% a
year earlier.
Generali, which owns a 63.5% stake in the unit, said it intends
to keep control of Banca Generali, adding it had agreed to a
six-month lock-up period with respect to the sale of additional
shares.
UBS AG (UBSN.VX, UBS) and Mediobanca (MB.MI) are the joint
global coordinators and joint bookrunners on the sale.
In Milan, Generali's shares ended down 2.7% at EUR12.15, while
those of Banca Generali closed 0.68% lower at EUR14.59.
Write to Gilles Castonguay at gilles.castonguay@dowjones.com;
Twitter: @GRCastonguay
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