九色

Zurich Insurance Group AG is nearing an agreement to acquire UK specialty insurer Beazley Plc and raise billions of dollars in equity to help fund the deal, according to people familiar with the matter.

The Swiss insurer is likely to announce a firm, recommended bid for Beazley as early as Monday, the people said. Simultaneously, the Swiss company is expected to tap investors for $3 billion to $5 billion by March 4, the latest deadline for it to make a definite offer for Beazley, one of the people said.

The final timing, and size of the equity raise, could still change, the people said.

In January, Zurich said it plans to finance any deal through existing cash and new debt facilities, with the remainder funded through an equity placing. Zurich’s latest proposal for Beazley values the London-listed company at about 拢8 billion ($10.8 billion).

Beazley shares rose as much as 2.3% in London. The stock was trading up 2.1% at 1,272 pence as of 3:11 p.m. local time, below Zurich’s cash proposal of 1,310 pence a share.

A representative for Zurich declined to comment, while one for Beazley wasn’t immediately available for comment.

Earlier this week, Zurich struck a deal to buy Australia-listed life insurer ClearView for about A$415 million ($295 million) in cash. Zurich also owns a 5% stake in Spanish lender Banco de Sabadell, data compiled by Bloomberg show.

Photograph: The Zurich Insurance Group AG’s headquarters in Zurich. Photo credit: Michele Limina/Bloomberg

Related:

• Zurich Insurance Profit Beats Estimates as CEO Eyes Beazley
• Zurich Insurance’s Beazley Bid Sets the Stage for More Insurance Deals
• Beazley Agrees to Zurich’s Sweetened 拢8 Billion Takeover Bid