Warren Buffett has joined the takeover bid of Generali on Cattolica launched last 4 October, contributing the share held by the subsidiary General Reinsurance. According to the latest updates, the Oracle of Omaha should hold a package equal to approx 6,9% of Cattolica, after his 9% stake was diluted as a result of the €300 million increase reserved for Generali.
Despite having with his Berkshire the Cattolica stake at over 7 euros, Buffett still sold to the Generali Offer, therefore deeming the price adequate, underlines Radiocor.
With Buffett joining, Generali's stake in Cattolica exceeds 42% and is therefore approaching 50% threshold plus one share which represents the minimum stake that Leone could accept for the success of the Offer, as well as a sufficient threshold to carry forward the merger and realize the synergies expected from the integration.
Until 21 October, 11,8% of the share capital, i.e. the treasury shares deriving from the withdrawal, had been accepted. A stake that adds up to that of Generali in Cattolica, equal to 23,67%. Adding also Buffett's support, we arrive at 42%. At this point, we must therefore wait for the decisions of the Banca del Monte di Lombardia Foundation, which holds 3,1% of the capital of Cattolica, and of Cariverona (about 1%). You have until 29 October to join the hour.
