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Is M&a Back? This Financial Company Is Looking To Sell Itself
The stock market was having a generally strong day on Tuesday, with all three major market averages higher. As of 1:30 p.m. ET, the S&P 500 (SNPINDEX: ^GSPC) was up by 0.8%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was doing even better as artificial intelligence (AI) stocks largely rebounded from the recent panic.
One major standout was Brighthouse Financial (NASDAQ: BHF). The insurance company was up by about 16% after rising as much as 25% earlier in the session.
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Brighthouse is on the market
According to the Financial Times, Brighthouse is working with investment bankers to either raise minority equity or sell the entire company, with a preference for the latter.
It isn't completely surprising that Brighthouse would choose this path. The stock trades for a discount to its book value, even after today's move, and it hasn't been able to hit its profitability targets.
If you aren't familiar, Brighthouse was spun off of MetLife about eight years ago and specializes in selling variable annuities. The complex nature of the product could be a roadblock to a potential deal, according to the report, but it also noted that Brighthouse's $120 billion investment portfolio could be appealing to larger alternative asset managers.
No guarantees a deal will happen
Of course, there is no guarantee that a deal will happen, and it's worth noting that none of the parties supposedly involved in the sale efforts are publicly acknowledging it. However, with a more regulatory-friendly climate starting to materialize, it wouldn't be surprising to see M&A activity pick up in 2025.
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Matt Frankel has positions in MetLife. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
