US Markets

Italian court rejects challenge to Cattolica capital increase

An Italian court has rejected a request by some shareholders in Cattolica to cancel approval of a 500 million euro ($592 million) capital increase, the insurance group said on Monday.

Adds details

MILAN, Aug 24 (Reuters) - An Italian court has rejected a request by some shareholders in Cattolica CASS.MI to cancel approval of a 500 million euro ($592 million) capital increase, the insurance group said on Monday.

The capital increase, executed by Cattolica's board earlier this month, paves the way for a tie-up with Italy's top insurer Generali GASI.MI, which committed to subscribe to 300 million euros of the capital increase. [nFWN2F618Y]

Last month, investors representing 0.03% of Cattolica's equity capital took legal action in a Venice court to challenge a resolution at an extraordinary shareholders' meeting on June 27 to allow the board to execute the capital increase, which was requested by insurance regulator IVASS.

"The deal with Generali goes on as envisaged," Cattolica said in a statement.

The deal will make Generali Cattolica's largest shareholder with a 24.4% stake, leapfrogging Warren Buffett's Berkshire Hathaway BRKa.N, which is currently the top investor with a 9% stake.

($1 = 0.8452 euros)

(Reporting by Giulio Piovaccari; Editing by Susan Fenton and Jane Merriman)

((giulio.piovaccari@thomsonreuters.com; +39 02 6612 9743; Reuters Messaging: giulio.piovaccari.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CASS

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More