Algebris Meets Investors In Italian Insurer Fight

Oct 29 2007 | 11:56am ET

The battle over Europe’s third largest insurer is taking shape this week, as activist hedge fund Algebris Investments begins to meet with other Assicurazioni Generali shareholders while Generali’s board meets on Wednesday.

London-based Algebris, which owns 0.3% of Generali but said it could raise its stake to 1%, today began meeting with investor groups interested in its proposals to improve governance and shareholder returns at the Trieste-based insurance giant, Italy’s largest. There are reportedly more than 20 such groups that have contacted Algebris, though it is unclear how many shares in the insurer they represent.

Last week, Algebris sent a letter to Generali’s board complaining about the firm’s poor performance, charging that it underperforms its larger rivals Allianz and Axa. According to Algebris, Generali achieves only 60% of its potential earnings. The hedge fund demanded “more robust corporate governance” and that the company split the CEO’s job and the chairmanship.

Algebris’ prospects are still somewhat uncertain. It needs the support of shareholders representing just 2.5% of Generali to forward motions at April’s annual meeting, and 10% to call an extraordinary meeting. Trading volume in Generali shares soared fourfold in the last three trading days, during which upwards of 8% of the company’s shares may have changed hands.

But Mediobanca, the investment bank that is Generali’s largest shareholder with a 16% stake, threw its support behind Generali management. It did say, however, that it would hear discussion on new corporate governance initiatives at the insurer.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.