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Italy's Generali To Sell Migdal Stake For EUR705M By October

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Dow Jones News Service

MILAN--Assicurazioni Generali SpA (G.MI), Italy's biggest insurer by premiums, said Thursday it agreed to sell its 69.1% stake in Israel's Migdal Insurance & Financial Holdings Ltd. (MGDL.TV) to Israeli financial group Elihau for 705 million euros ($889 million).

This is the second time the Italian insurer has agreed to sell its stake in the Tel Aviv-listed company to Eliahu, after their previous agreement in March couldn't be finalized due to the Israeli financial group not obtaining all the necessary authorizations.

Generali said the new agreement should be finalized by October.

The Italian insurer said the sale would have a positive impact of 2.2 percentage points on its Solvency I ratio.

The final transaction price has an implied premium of around 23% to Migdal's Sept. 5 share price, and is 17.1x Migdal's 2011 consolidated net income.

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