Germany's Allianz announces bid for AGF

18th January 2007, Comments 0 comments

FRANKFURT, Jan 18, 2007 (AFP) - German insurance giant Allianz said on Thursday it intended to take full control of its French affiliate AGF for 10.5 billion euros (13.6 billion dollars).

FRANKFURT, Jan 18, 2007 (AFP) - German insurance giant Allianz said on Thursday it intended to take full control of its French affiliate AGF for 10.5 billion euros (13.6 billion dollars).

Allianz said in a statement it would offer 87.5 euros per AGF share, plus 0.25 percent of an Allianz share, to acquire the 42.4-percent stake in AGF which it does not already own.

A company spokesman said Allianz had calculated that the operation would cost 7.5 billion euros in cash and another three billion euros in shares.

The company also announced that it planned to buy the remaining nine percent which it does not hold in its life insurance affiliate, Allianz Lebensversicherung.

Allianz has been on a buying spree, which included the Italian insurer RAS.

Company chairman Michael Diekmann announced the company's intentions to raise its stake in AGF to 100 percent in September last year, saying it was a "logical development".

At the time, however, he said that the market price for the outstanding stake in AGF was not right.

Copyright AFP

Subject: French News

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