March 22, 2018

Softbank in talks to acquire minority stake in Swiss Re

11 February 2018, 04:15 | Melvin Schneider

Reinsurer Swiss Re spikes on a possible $10 billion Softbank stake

Softbank in talks to buy stake in Swiss Re - WSJ

The reinsurance giant said in a press release, "Swiss Re informs that it is engaged in preliminary discussions with SoftBank Group Corp".

The Zurich-based company declined to comment further.

The reinsurer gained as much as 6.8 percent in Zurich on Thursday, the highest intraday rise since November 2011, and was trading 4.2 percent higher at 11:29 a.m. local time. A spokesman for SoftBank didn't immediately respond to requests for comment.

The reinsurer's shares closed at 90.18 Swiss francs on Wednesday.

If Swiss Re were to agree to SoftBank's approach, it has the capacity to issue up to 135 million new shares without seeking approval from existing shareholders, who could potentially be blocked from buying the first 70 million new shares, according to the company's articles of association.

Softbank is looking to purchase up to a third of Swiss Re's shares at a premium, the Journal reported.

Kim Jong Un invites South Korean President Moon to Pyongyang
The 28-year-old is a crucial part of the North's Games delegation led by Kim Yong Nam , North Korea's nominal head of state. Moon said he wanted to "create the environment for that to be able to happen", according to the office.

Three killed in Grand Canyon helicopter crash
Images emerged on Twitter of flames and thick black smoke rising from among the layers of rock at the scene of the crash. He added that flying in the Grand Canyon can be treacherous simply because of the number of helicopters there.

Riyad Mahrez: On bench against Manchester City
City became interested in the six-time Brazilian global after facing him twice in the group stages of the Champions League . I hope he can come back with a good attitude and prepared to work, but he will need time, and time to be match-fit.

SoftBank, which has raised $93 billion of its planned $100 billion Vision Fund, has taken stakes in businesses including ride-hailing, chipmaking, office-sharing, satellite-building, robot-making, even indoor kale-farming.

A significant investment in one of the world's largest reinsurance firms would mark a departure from recent moves, but analysts said that Swiss Re is an attractive target because of its reliable strong cash flow and revered performance record.

The news follows SoftBank's announcement on Wednesday that it was preparing to list its domestic telecoms unit, raising further funds that could be used to shore up its finances or make more investments.

Swiss Re's top management recently visited Japan and met with SoftBank Chairman and CEO Masayoshi Son, the report said.

The purchase of a stake in Swiss Re would be the latest in a constant stream of investments that have made valuing SoftBank hard and left a "conglomerate discount" weighing on its share price.

Other News

Trending Now

Virginia Tech vs. Virginia College Basketball Predictions 2/10/18
Blackshear, who finished with just seven points and who missed six wide open three-pointers, was also fouled on the play. Jerome's desperation shot at the buzzer found nothing but backboard, and the celebration was on for Buzz Williams' team.

Trump defends Hicks as Porter fallout continues
But their public support for Porter quickly evaporated, once a photo surfaced showing one of his ex-wives with a black eye. A background check for security clearance was in progress at the time of his resignation.

House vote ends shortest government shutdown
WASHINGTON , D.C. (KFSM)- President Trump announced he signed the Bipartisan Budget Act into law early Friday Morning (Feb. 9). He said he could not "look the other way because my party is now complicit in the deficits".

Trump Attacks #MeToo Movement After Two House Aides Resign Amid Allegations
The ex-wife of speechwriter David Sorensen said he ran over her foot with a vehicle and put out a cigarette on her hand. Trump Friday wished his former aide well, noting that Porter had done "a very good job in the White House ".