Swiss Re has announced it is to sell shares worth about SFr4.7 billion ($2.86 billion) to help fund its acquisition of Lincoln Re.This content was published on October 22, 2001 - 11:29
Swiss Re is to issue 28,522,370 shares, offering existing shareholders one new share for every 10 held. The move is expected to raise capital by almost 10 per cent.
Swiss Re announced the SFr3.36 billion deal in July, saying that Lincoln Re - part of the Lincoln National Corporation in the United States - would be integrated into the Swiss Re North American Life and Health Unit.
It added that the acquisition would strengthen its position as the leader in the world's largest life and health reinsurance market.
The reinsurance unit of Philadelphia-based Lincoln, which had revenues of $1.7 billion last year, will increase Swiss Re's share of the US life and health market to 29 per cent from 18 per cent.
Swiss Re expects two-thirds of the cash to be raised in equity. It may also use the capital as underlying shares for a convertible bond.
swissinfo with agencies