The CEO of Europe’s largest insurer, Allianz, suggested he was open to a merger of equals, but also said lofty stock valuations stood in the way of big deals, the Financial Times reported on Monday, May 7.
“Large companies need to be ready for mergers, and we haven’t found many,” the paper quoted Oliver Baete as saying.
“We are always open for these discussions, and more so than, I think, other institutions.”
Baete added, however, “It is very difficult to justify paying 30 percent more on a 30 billion euro (26.4 billion pounds) asset than to pay 30 percent on a 5 billion euro asset.”.
Baete has often pointed to the high price of potential takeover targets when asked about mergers and acquisitions for Allianz, Europe’s largest insurer.
He ruled out hostile takeovers. “We would never go after anybody against their will; never,” Baete told the paper.
Full Content: Financial Times
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