Softbank stake in Swiss Re may be 10%

Swiss reinsurance giant Swiss Re said yesterday talks were ongoing with SoftBank, but that the Japanese group would likely take a stake of no more than 10 per cent, much less than earlier expectations.

Swiss Re announced that it was in talks the tech- investor in February, but had never mentioned the size of the possible stake.

Financial news media including Bloomberg had cited sources familiar with the talks as saying the Japanese firmcould take up to a third of Swiss Re for more than $ 10 billion ( Dh36.7 billion, € 8.2 billion). At current share prices, a 10 per cent stake in Swiss Re is worth approximately $ 3.5 billion.

In a statement released yesterday as the reinsurer holds an investor day, Swiss Re confirmed “that negotiations are still ongoing in respect ofaminority investment by SoftBank in Swiss Re, currently expected not to exceed 10 per cent of Swiss Re’s share capital.”

The announcement of the talks had surprised investors, as SoftBank usually invests in technology ventures. The company is making a concerted effort to invest in technology firms through its $ 100- billion Vision Fund investment vehicle.