Fondiaria Rises as Unipol Investor Finsoe Commits to Deal: Milan Mover
Stock Chart for Unipol Gruppo Finanziario SpA (UNI)
Fondiaria-SAI SpA (FSA) rose in Milan after Finsoe, the biggest shareholder in Unipol Gruppo Finanziario SpA (UNI), said it can invest as much as 500 million euros ($660 million) in the planned merger of the two insurers.
Finsoe will “directly invest” 350 million euros in the capital increase that Unipol plans to finance the transaction, la Repubblica reported, citing an interview with Finsoe’s Chairman Marco Pedroni.
Fondiaria, based in Turin, climbed as much as 17 percent to 1.03 euros before being temporarily halted, giving the company a market value of 451 million euros. Its unit Milano Assicurazioni SpA (MI) increased 8 percent to 28 cents. Unipol rose 11 percent to 22.7 cents.
Unipol agreed last week to buy new shares in Premafin Finanziaria SpA (PF), the controlling investor of Fondiaria, becoming its main shareholder. The purchase will allow Premafin to participate in a 1.1 billion-euro share sale announced by Fondiaria on Jan. 30. After the recapitalization, all four of the companies will merge to become Italy’s second-biggest insurer after Assicurazioni Generali SpA.
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