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Swiss Re confirms SoftBank looking at stake; $10B bid reported

SoftBank Group Corp. is in talks about taking a minority stake in Swiss Re AG, the reinsurer said, as The Wall Street Journal reported that the Japanese telecommunications company could buy up to a third of the firm for $10 billion or more.

"Swiss Re informs that it is engaged in preliminary discussions with [SoftBank] regarding a potential minority investment in Swiss Re. Discussions are at a very early stage," Swiss Re said. "There is no certainty that any transaction will be agreed, nor as to the terms, timing or form of any transaction."

People familiar with the matter told the Journal that discussions were in an advanced stage and a deal would keep Swiss Re a public company and preserve its AA credit rating. The Japanese firm would pay a premium for the Swiss reinsurer's shares.

Swiss Re's shares jumped 4.4% to CHF94.14 by 11 a.m. in Zurich.

It was unclear whether SoftBank itself would fund the investment or whether it would draw from its $100 billion venture capital fund, the Vision Fund, the report added. SoftBank intends to use its network of corporate holdings to expand the reach of Swiss Re's offerings via technology-based brokering, according to the sources.

The Japanese firm has recently having acquired stakes in Line Corp. unit Line Mobile and ride-hailing company Uber Technologies Inc., among other investments.

Swiss Re, meanwhile, has drawn interest from private equity firm Apollo Global Management LLC and other suitors over the past two years, the Journal noted.