The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Allianz war timing sends investors diving for cover

Issuer: Allianz Size: e3.5 billion to e4 billion Bookrunners: Citigroup, Deutsche Bank, Goldman Sachs, UBS Warburg

Michael Diekmann, the new CEO of Allianz doesn't need much sleep. At least that's what launching a rights issue on the day Britain and the UK start their war on Iraq suggests. Either that, or Allianz is so desperate for cash that it simply couldn't wait. "The fact that it has come now when the markets are so depressed indicates that there's a degree of urgency," says Matthew Leeman, a fund manager at SG Asset Management.

And there's nothing like a company that really needs money to turn investors right off. "You have to ask yourself, 'what is in this for us?' Are we just paying for the mistakes of the past?" says Henning Gebhardt, head of German equities at DWS Investments in Frankfurt. "The dilution effect is massive and the future business Allianz will have to generate to compensate for that is huge."

Bankers working on the deal say timing is not an issue. "Many rights issues come from companies that have waited far too long," says Michael Klein, CEO of investment banking for EMEA at Citigroup. "This is a sensible move at the right time."

But in fact, since mid 2002 a succession of insurance companies, as well as firms in other sectors, have held out the begging bowl with varying degrees of success.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree