View this article online: https://www.insurancejournal.com/news/international/2008/01/16/86450.htm
Germany’s Allianz SE announced that it is set to further reduce its stake in Munich Re by redeeming the “remaining part of 35.65 percent of the BITES bond issued in February 2005 with Munich Re shares at the final maturity date.” The first tranche of the BITES bond was redeemed with Munich Re shares in March 2007.
Allianz said “the current market value of the bond, which matures on February 18, 2008, amounts to approximately €850 million ($1.256 billion).” The redemption will reduce Allianz stake in Munich Re to around two percent.
Germany’s big industrial and financial groups have historically held fairly substantial stakes in one another for many years. Many companies, including Munich Re and Allianz are in the process of unwinding these cross shareholdings.
Allianz explained that according to an “exchange notice that it has filed in Luxembourg, “the number of Munich Re shares required to redeem the remaining part of the bond will be based on the averages of the DAX index and the Munich Re share price during a 20-day reference period. The reference period will start on January 22, 2008 and end on February 18, 2008. The delivery of the Munich Re shares will take place on February 27, 2008.”
Source: Allianz – www.allianz.com