Insurer Ambac slides on sale of legacy financial guarantee business

Octave Specialty

05/06/2024 17:24

** Shares of specialty property and casualty insurer Ambac
Financial Group  AMBC.N  fall as much as 19.3%, last down 18.7%
at $14
    ** AMBC to sell its legacy financial guarantee businesses to
funds managed by asset manager Oaktree Capital for $420 mln
    ** Deal value may be less than what some investors hoped,
Roth MKM analyst Harry Fong says
    ** There were likely only a few potential buyers, Fong adds
    ** Transaction expected to close in Q4 2024 or Q1 2025
    ** As of last close, AMBC shares were up 4.6% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))