(Bloomberg) – Allianz SE Chief Executive Officer Oliver Baete has 3 billion euros ($3.2 billion) to spend on acquisitions and is scouting for targets from Australia to Italy. Rushing into a deal would be a mistake, according to some investors and analysts.
With two weeks remaining before a self-imposed deadline, Baete should take a "disciplined" approach to M&A and distribute the unused budget to shareholders, according to Tim Friebertshaeuser, a fund manager at DWS Investments. DWS is part of Deutsche Bank AG, Allianz's second-largest shareholder, according to data compiled by Bloomberg.
"Maybe it's more efficient for them to use their current strength to grow their market share organically, instead of spending billions on acquisitions," said Friebertshaeuser.
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