Why Shares of Genworth Financial Are Falling Today
Genworth Financial (NYSE: GNW) on Tuesday announced another extension to its proposed deal to be acquired by China Oceanwide Holdings, the 15th time the two sides have extended the deadline to complete a deal originally announced in 2016. But this extension also lays out the terms to call the deal off, leading shares of the insurance company to decline 25% at the open on Tuesday.
The China Oceanwide/Genworth saga has rivaled a bad sitcom romance, but after nearly four years of drama it appears we might finally be heading toward a conclusion. In October 2016, China Oceanwide announced plans to acquire the onetime General Electric subsidiary for $2.7 billion, but regulatory hurdles and other issues have complicated efforts to get the deal done.
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