Brighthouse Financial shares leap on potential sale reports

Published 28/01/2025, 16:00
© Reuters.

Investing.com -- Shares of Brighthouse Financial (NASDAQ: NASDAQ:BHF) surged 20% following reports that the company is exploring a sale. According to the Financial Times, which cited sources familiar with the matter, Brighthouse Financial is working with advisors from Goldman Sachs and Wells Fargo (NYSE:WFC) to evaluate potential offers.

The company, known for its variable annuities products, is at the early stages of considering bids for the entire company or raising minority equity. Despite the complexity and high capital charges associated with variable annuities, Brighthouse Financial is reportedly seeking an outright buyer rather than a minority stake sale.

The news comes at a time when the company’s strategic focus has been under scrutiny, given the challenges in the annuities market. The reported willingness to sell has sparked interest among investors, as evidenced by the significant uptick in the company’s stock price.

Brighthouse has stated that it does not comment on rumors and speculation. Similarly, Goldman Sachs and Wells Fargo have declined to comment on the matter, as reported by the Financial Times.

This move could potentially reshape Brighthouse Financial’s future, although there is no guarantee that a deal will be finalized. The process is still in its infancy, and the company’s preference for an outright buyer could narrow the field of potential bidders, especially given the complexities associated with its product offerings.

Investors will be closely monitoring the situation as it unfolds, looking for any signs of a concrete offer or interest from potential buyers. The market’s reaction to these initial reports suggests optimism about the possibility of a sale, but the outcome remains uncertain at this stage.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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