Japan's SoftBank Is Said to Seek Swiss Re Board Seats: FT

(Bloomberg) -- SoftBank, a Japanese telecommunications and technology company, is seeking board seats at Swiss Re as it looks to acquire a stake in the reinsurance company, the Financial Times reported on Sunday.

The Japanese company is looking at taking a 20 percent to 30 percent stake in Swiss Re AG, the newspaper reported, citing unidentified people close to the matter. One person described the premium over Swiss Re’s current share price as “substantial” while another said it would be “small,” the FT said. Swiss Re’s shares closed at 94.40 Swiss francs ($101.83) on Friday. 

Masayoshi Son, SoftBank Group Corp’s founder and chief executive officer, is meeting with Swiss Re Chairman Walter Kielholz in the coming weeks to discuss a possible agreement, the FT said. The investment would be made by SoftBank itself, rather than its investment fund, the newspaper said.

Bloomberg reported earlier this month that SoftBank was in talks to buy as much of a third of Swiss Re in a transaction that could be valued at more than $10 billion. The reinsurer at the time confirmed the talks and said they were at a very early stage. The transaction would give the Japanese company access to the healthy cash flows that reinsurance companies generate as they collect premiums.

UBS Group AG is advising SoftBank and Credit Suisse Group AG is advising Swiss Re, according to the FT. UBS CEO Sergio Ermotti made the initial approach to Swiss Re’s Kielholz, the newspaper said.

A U.S.-based spokesman for Swiss Re wasn’t immediately available on Sunday. SoftBank didn’t immediately respond to a request for comment sent via the web.

To contact the reporter on this story: Dan Wilchins in New York at dwilchins@bloomberg.net.

To contact the editors responsible for this story: Bernard Kohn at bkohn2@bloomberg.net, Randall Woods

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