The sharp,drop in world stock markets may giving Swiss Re second thoughts about its plan to issue up to $2.6 billion worth of additional shares to fund its purchase of Lincoln National’s reinsurance operations.
According to London’s Financial Times, the recent 15 percent drop in the price of Swiss Re’s shares since the announcement of the Lincoln acquisition has fueled speculation that it might increase its capitalization by more than 10 percent.
Company officials have denied this, however, but have also indicated that if the markets remain as depressed as they have recently the company might explore other avenues to raise the $2 billion it needs to finance its Lincoln purchase.
Was this article valuable?
Here are more articles you may enjoy.