Italy’s second-largest bank, Intesa Sanpaolo SpA announced Friday evening that it has decided against launching a takeover bid for insurer Assicurazioni Generali SpA.
In a statement, the bank said it had determined that such a tie-up wouldn’t enhance Intesa’s growth prospects. Intesa had been considering a combination with Generali as part of a strategy to grow in insurance, asset management and private banking.
However, the insurer, which is Italy’s largest and one of the biggest insurance companies in Europe, had made clear that any approach by Intesa would be hostile.
Moreover, many analysts and some executives in Italy’s financial sector raised doubts as to whether Intesa would see sufficient synergies to justify a hostile takeover, particularly since tie-ups between insurance and banking groups have often seen poor returns in recent years.