Exemplifying the wackiness in the world of finance right now, MetLife Inc. has gone from roadkill to a predator in the course of a few days. Last week Senate Majority Leader Harry Reid, D-Nev., sent shivers through the markets when he made a statement, which he later retracted, that a major insurance company was on "the verge of going bankrupt." MetLife responded saying it is "financially sound. ... MetLife is fully able to meet all its obligations." Now, despite reducing its third-quarter earnings Tuesday, MetLife still believes it can pay its bills and possibly pull off a deal or two.
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With $4.8 billion in excess capital and an additional $2.8 billion from a recent stock offering, CEO Robert Henrikson sees "tremendous opportunities" for growth just from American International Group Inc.'s divestment plan to pay off its $85 billion government loan. But when asked Wednesday by UBS analyst Andrew Klingerman which specific assets MetLife is interested in, Henrikson was coy: "There are several opportunites that are available to us. ... We are enthusiastic."
But CFO William Wheeler seemed a bit less enthusiastic about dealmaking than Henrikson, saying Wednesday: "This is about more than just building a war chest for doing an M&A deal."
Could Wheeler's statement be more of a smoke screen for bigger things to come? Maybe. After all, MetLife pulled off its biggest coup two years ago without much warning, unloading apartment complex Stuyvesant Town Peter Copper Village at the apex of the real estate frenzy for a record $5.4 billion.
For MetLife, there's obviously plenty out there for it -- it will just be a matter of when or if it wants to pull the trigger - Gerald Magpily
See Bloomberg article
See TheStreet.com article
