Cevian's Investment in Baloise: Over 3% Stake Revealed

Cevian’s Investment in Baloise: Over 3% Stake Revealed

Tue, May 21st 2024

Cevian Capital, a Swedish activist investor, now owns more than 3% of Swiss insurance group Baloise, intensifying market speculation and scrutiny.

Cevian Capital, the Swedish activist investor, has officially declared its ownership of more than 3% of Swiss insurance group Baloise. This announcement, made on Monday, confirms previous media speculations from last fall. According to “Finanz und Wirtschaft,” Cevian had been in discussions with Baloise’s management, demonstrating a keen understanding of the investment.

Previously, Baloise had a voting rights restriction of 2%, limiting shareholders’ registration and voting rights. However, asset manager zCapital proposed to remove this restriction during the Annual General Meeting at the end of April. The shareholders’ unexpected approval lifted the voting rights cap, allowing larger stakes like Cevian’s to have more influence.

Market conversations quickly turned to the implications of this change, with concerns about increased scrutiny from activist investors. Jens Tischendorf, a former Cevian partner and co-founder of Active Value Partners, mentioned to Bloomberg that the shareholders’ decision would likely heighten the pressure on Baloise’s Board of Directors and management.

Rumors of a potential takeover have resurfaced, with Cevian and major insurance groups like Generali and Allianz mentioned as possible buyers. Cevian is notably recognized in Switzerland for its significant stake in the industrial group ABB.

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Cevian’s Investment in Baloise: Over 3% Stake Revealed

Noteworthy

21 May 2024