Scenarios in short, PUBLISHED:

Estimated reading time: 4 minutes

by Davide Pantaleo

READ MORE ARTICLES ON

Cattolica Assicurazioni Generali

Cattolica Assicurazioni revised the plus sign after two sessions in red: focus on Friday’s shareholders’ meeting. The expectations of analysts.

In Piazza Affari today the traffic light went green for Cattolica Assicurazioni which after two consecutive sessions in red has found its way back to earnings.

Cattolica Assicurazioni positive after two sessions in red

Archived yesterday with a drop of two percentage points, today the stock rose against the reference index.

At the end of the day Cattolica Assicurazioni stopped at € 5.215, close to the intraday highs, with a rise of 1.16% and just over 500 thousand shares traded, well below the average of the last 30 days of approximately 1, 7 million pieces.

Cattolica Assicurazioni: what is the agreement with Generali

Cattolica Assicurazioni remains in the spotlight of the market in view of the appointment on the agenda on Friday 31 July, when the meeting will meet to vote on the transformation into Spa, a key step for Generali’s entry into the capital of the insurance company.

As anticipated in recent days, the framework agreement between Cattolica and Generali provides for the commitment of both parties to evaluate corporate or market operations that allow the strengthening of the partnership and synergies, as well as to negotiate on subsequent possible extraordinary operations between the two groups.

The agreement, the analysts of Equita SIM recall, is subject to the outcome of the meeting held on 31 July which will have to approve the transformation of Cattolica into SPA and therefore the capital increase reserved for Generali, which would become the first shareholder with a stake in 24.4%.

Cattolica: focus on conditions precedent for capital increase

However, in the document, among the conditions preceding the execution of the reserved capital increase, it emerges that “no shareholder or member of Cattolica Assicurazioni’s corporate bodies has formally initiated proceedings before the competent authority to appeal against the resolution to adopt the New Statute and / or the transformation resolution “.

Cattolica Assicurazioni: Equita sees the risk of pressure on the share

The Equita SIM experts believe that this condition may generate pressure on the share, since, given the contrasts within the Cattolica shareholder base regarding the transformation into a SPA, the analysts believe it creates greater uncertainty on the effective entry of Generali and on the possibility of carrying out the capital strengthening.

Among the alternatives to the entry of the Trieste company, an aggregation with Vittoria Assicurazioni could be assessed, recalling that recently the CEO of the latter confirmed the interest), although, according to what reported by the general manager of Cattolica Assicurazioni, Ferraresi, in an interview with Milano Finanza last Saturday, the terms for Cattolica’s shareholders would have been more penalizing.

Pending news, Equita SIM analysts maintain a cautious view of Cattolica Assicurazioni, with a “hold” recommendation and a target price of 4.5 euros. The same rating is repeated for Generali, with a target price of 15.1 euros.