Intesa Sanpaolo considering share-based bid for Generali - sources

MILAN (Reuters) - Italy's biggest retail bank Intesa Sanpaolo is considering a share-based offer to buy a majority stake in insurer Assicurazioni Generali, two sources close to the matter said on Tuesday.

The sources, speaking on condition of anonymity, said Intesa's two main foundation shareholders - Compagnia di San Paolo and Fondazione Cariplo - backed the move even if it could temporarily reduce dividends for the bank's current investors.

One of the sources said Intesa aimed to take control of Italy's biggest insurer with a view to reorganise the group and sell some assets.

Under Italian rules on cross-shareholdings, Intesa would have to launch an offer on at least 60 percent of Generali, which on Monday said it had taken a 3.01 percent stake in the bank in a pre-emptive strike against any hostile offer.

 

Intesa's board meets on Friday. A bank's spokesman reiterated that the bank does not comment on rumours. La Repubblica daily first reported on Tuesday that the bank was considering a share swap offer on Generali.

(Reporting by Paola Arosio and Gianluca Semeraro, writing by Silvia Aloisi, editing by Valentina Za)