Shares in Italy's largest insurer Assicurazioni Generali (GASI.MI) are up
more than 3 percent ahead of its merger with its unit Alleanza Assicurazioni
ALZI.MI, effective on Thursday, and an increased Generali weighting in
"In the indexes which include only Generali -- Eurostoxx50 .STOXX50E and
STOXX50 .STOXX50 -- we expect Generali's weight to increase by 10 percent," a
broker with an international firm says.
Another broker from the same firm says funds will have to buy volume
equivalent to one day's normal trading in Generali to make up the extra weight
in their portfolio and this buying explains the rise on Tuesday.
Indexes such as Milan's blue chip FTSE MIB .FTMIB are seen litle-impacted
because Generali and Alleanza are both in the index and Alleanza shareholders
will get Generali shares.
Under the merger announced earlier this year Alleanza shareholders will each
get 0.33 Generali shares.
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