Story
Sixth Street Renews Bid for Brighthouse Financial Amid Scrutiny of Existing Deal, Bloomberg Reports
Summary
Sixth Street has reportedly revived its offer to acquire insurer Brighthouse Financial, as the company's current sale agreement with Aquarian Holdings faces a regulatory review over its funding.
Investment firm Sixth Street is renewing its pursuit of Brighthouse Financial Inc. (BHF) as the insurer's pending acquisition by Aquarian Holdings remains under regulatory review, according to a report from Bloomberg News. The development introduces a new dynamic into the M&A situation, creating a potential alternative for Brighthouse should its current deal fail to close.
The Renewed Offer
Talcott Financial Group, an insurer backed by Sixth Street, reportedly sent a private letter to the Brighthouse board last month. According to people with knowledge of the matter cited by Bloomberg, the letter reaffirmed Talcott's interest in acquiring the insurance and annuity provider.
The offer is contingent on the termination of the existing agreement with Aquarian Holdings. Shares of Brighthouse Financial rose more than 4% following the report, indicating investor interest in a potential bidding contest or a more certain outcome for the company.
AdRegulatory Hurdles
Aquarian Holdings reached an agreement to buy Brighthouse last year. However, the transaction is currently being examined by Delaware’s insurance regulator, which is reportedly scrutinizing the funding sources for the deal.
This regulatory uncertainty has created an opening for Sixth Street to re-engage. Representatives for Sixth Street, Talcott, Brighthouse, and the Delaware Department of Insurance all declined to comment on the matter, according to Bloomberg.
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