By Alexandra Edinger, Ulrike Dauer and Eyk Henning
FRANKFURT--A co-owner of German primary insurer Provinzial
Nordwest Holding AG said Friday it isn't planning to sell its 40%
stake in the German insurer and that a sale would need the approval
of all shareholders.
The statement by the regional authority, or Landschaftsverband,
of Westphalia-Lippe, follows a report by Financial Times
Deutschland that Allianz SE (ALV.XE) plans to buy Provinzial, which
is owned by German public-sector savings banks.
The newspaper, without citing sources, said Allianz is offering
2.25 billion euros ($2.91 billion), equivalent to Provinzial's book
value, and that Chief Executive Michael Diekmann recently met the
insurer's three owners to discuss the offer.
The Landschaftsverband owns 40% of Provinzial , the savings
banks in Westphalia-Lippe own another 40%, the savings banks in
Schleswig-Holstein own 18%, and the eastern German savings banks
own the remaining 2%.
"In the past, we've repeatedly received offers for the
economically sound company," said Wolfgang Kirsch, who heads the
Landschaftsverband, adding that the insurer "can only be sold with
the approval of all shareholders."
Representatives for Allianz and the savings banks in
Westphalia-Lippe and eastern Germany declined to comment.
A spokeswoman for Provinzial also declined to comment and
referred to the statement by the co-owner. The savings banks in
Schleswig-Holstein weren't immediately available to comment.
According to its annual report, Provinzial had gross premium
revenues of EUR3.04 billion in 2011 and booked a net profit of
EUR116.2 million. It employs 2,960 people.
Write to Alexandra Edinger at alexandra.edinger@wsj.com, Ulrike
Dauer at ulrike.dauer@wsj.com, and Eyk Henning a
eyk.henning@wsj.com
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