Czech PPF says Generali may join its Russian buy

...Czech investment company PPF said on Tuesday.

PPF Investments, a private investment arm of Czech financier Petr Kellner, owns 38.46 percent of Ingosstrakh, one of the largest Russian insurance companies, via its PPF Beta vehicle.

"PPF Investments Group is pleased to announce that positive negotiations are in place with Generali Worldwide Insurance Company Ltd., which may lead the latter to become one of the key investors acquiring a 49 percent shareholding in PPF Beta Ltd.," PPF said in a statement.

It said the investment would be in line with Generali's plan to expand in Russia after setting its sights on becoming the sector leader in central and eastern Europe by buying a stake in leading Czech insurer Ceska Pojistovna.

In July, Generali signed the final agreement with Kellner's PPF Group to create a joint venture that will control Ceska Pojistovna. Kellner runs PPF Group's insurance and other assets separately from PPF Investments.

Generali co-Chief Executive Sergio Balbinot told an Italian newspaper in July that the insurer would use its Czech buy as a springboard to expand into Russia.

Generali has come under pressure from investors to secure a deal which would put it on a par with larger rivals such as France's Axa and Germany's Allianz AG .

[PRAGUE/Reuters/Finance.cz]