MILAN (Reuters) - Shares in Italy's biggest insurer, Assicurazioni Generali (MI:GASI), soared 11 percent on Tuesday on speculation that banking major Intesa Sanpaolo (MI:ISP) could mount a bid.
Generali had announced on Monday that it had acquired a 3 percent stake in Intesa Sanpaolo, a move widely seen as a defensive measure against a hostile bid. Under an Italian law on cross-shareholdings, Generali's move effectively discourages Intesa Sanpaolo from doing anything but making a full offer.
Italy's La Stampa daily said at the weekend that Intesa could seek to build a large stake in Generali, possibly as part of a broader deal with German insurer Allianz (DE:ALVG).
La Repubblica newspaper reported on Tuesday that Intesa was considering a share-based offer for Generali and could make a move in coming days.
Intesa declined to comment. Intesa shares fell more than 3 percent in early trade on Tuesday.