Munich Re in Talks with Cevian Capital

Today German reinsurer Munich Reinsurance Co. stated it was in talks with Cevian Capital, confirming "Te Finanical Times" that the Swedish activist investor had bought a stake in the carrier. 
 
The Financial Times reported stated that Cevian, backed by billionaire investor Carl Icahn, had taken a stake of nearly 3% in Munich Re and intended to call for strategic changes. 
 
The Financial Times said Cevian Capital would demand a series of "operational, strategic and financial" changes to bolster the reinsurer 's share price. 
 
Cevian Managing Partner Christer Gardell told the paper Cevian was a "long-term" shareholder that wanted to "adopt an industrial approach and work with the management." 
 
" Reinsurance is a neglected area for many investors and there are significant opportunities for enhancing value. Growth has not been great, the market has been hit by hurricanes and the industry is out of favor," he told the newspaper. 
 
Mr. Gardell also said the group intended to up its stake. 
 
The paper reported it was Cevian's first big move into Germany.

Published on December 7, 2007