MILAN, Jan 15 (Reuters) - Italy's leading insurer Generali is aiming to achieve a preliminary agreement with Natixis Investment Managers to merge their asset management operations and present the proposal to its board on Jan. 20, as per two individuals familiar with the situation.
Generali and Natixis have been in talks about a potential merger that would establish a prominent European fund manager, responding to industry pressures to increase scale for protecting profit margins and supporting growing technology investments.
With 1.28 trillion euros ($1.32 trillion) in assets as of Sept. 30, Natixis, a subsidiary of French bank BPCE, exceeds Generali's 843 billion euros.
One of the sources mentioned that Generali would contribute 650 billion euros to the joint venture, while still holding onto the assets of its private bank Banca Generali.
As previously reported by sources, Generali and Natixis are expected to each hold a 50% stake in the merged entity, with the likelihood of Woody Bradford, the current head of Generali Investments Holding (GIH), being appointed as CEO.
Attaining approval for a preliminary agreement from the board during the upcoming meeting on Monday would enable Generali to present the merger to investors during the strategy day scheduled for Jan. 30 in Venice.
Initial reports on efforts to finalize a deal by Jan. 20 were initially disclosed by Italian newspaper la Repubblica.