Groupama to seek further business negotiations?

The French insurer Groupama has dubbed the offers it has received for a wing of its business as being too low.

Groupama is set to seek further business negotiations going forward after it decided initial offers for its GAN Insurance wing are too low.

Axa and Covea, Generali and Allianz are among the interested parties, but the French firm may now seek to use negotiation skill to broker a better arrangement, Les Echos reports.

The news provider continued by saying the company is not willing to sell at a "knockdown price", especially because there are so many organisations looking to make a bid.

Groupama - which has been operating for over 100 years - has been given until the end of 2011 to come up with a plan for recapitalisation.

This could also lead to a slowing in consultations with prospective acquirers, unless regulators seek to enforce a tight schedule.

It has been reported that Groupama is looking to make between £700 million and £1 billion by agreeing a deal.

Posted by Edel Quinn

Source: Les Echoes, November 25th