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Allianz stock surges
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September 16, 1999: 8:23 a.m. ET
Portfolio shake-up talk, board changes, results boost German insurer
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LONDON (CNNfn) - Speculation that Allianz will restructure its powerful equity portfolio caused the Munich-based insurer's stock to surge more than 7 percent in Frankfurt Thursday.
An Allianz spokesman played down any likelihood of an immediate change in the company's policy regarding its portfolio He attributed the jump in the share price -- up 10 percent in the last two sessions -- to analysts' speculation.
Allianz, Europe's second-largest insurer behind France's Axa (PCS), holds substantial stakes in a number of German blue-chip companies, including Dresdner Bank (FDRB), with a 22 percent holding.
It also owns 17 percent of HypoVereinsbank (FHVM) and 5 percent of Deutsche bank (FDBK).
Rob Jones, a director at the Standard and Poor's rating agency, noted "significant pressure on German companies to unwind their complex web of relationships."
He said investors are demanding greater clarity and transparency from companies, as Germany moves to more U.S.-style capital markets.
Allianz posted impressive first-half earnings Wednesday, with net profits amounting to 1.2 billion euros ($1.25 billion).
The group did not announce a comparative profit figure for the first half of 1998, although for the full year it generated earnings of 1.8 billion euros.
Investors were more excited by two new board appointments, particularly the recruitment of Goldman Sachs' senior German executive Paul Achleitner as finance director.
Investors are betting that Achleitner, who brokered a number of significant deals in Germany while at Goldman Sachs, will breathe new life into Allianz's portfolio of assets.
The Allianz spokesman maintained there would be no immediate official announcement on changes to the group's mergers and acquisition policy.
Allianz shares rose 7 percent to 270.70 euros by mid-session in Frankfurt Thursday.
Allianz's portfolio includes an 11 percent stake in Lunde, 10 percent stakes in BASF, RWE and Veba, a 6 percent share of Viag and a 5 percent interest in Bayer.
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Allianz
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