Fosun said to have approached Alleghany about buying division/s; Swiss RE also believed to be circling US insurance group

I'm hearing from top sources that Fosun, the fast growing private Chinese conglomerate, is interested in buying parts of Alleghany Corporation, the US-listed insurance group.

Indeed, I have been told Fosun - which is run by entrepreneur Guo Gaungchang, often dubbed the 'Warren Buffett of the East' - has already expressed an interest in purchasing divisions of Alleghany.

As a result, Alleghany has asked Goldman Sachs to advise the company on its 'strategic options,' according to my sources. (see this Reuters article about Alleghany hiring bankers http://uk.reuters.com/article/2015/05/20/us-alleghany-divestment-exclusive-idUKKBN0O525S20150520)

For readers that haven't been following this situation closely, last week Adam McNestrie - the editor of Insurance Insider, a top trade publication - revealed Scor recently approached Alleghany about buying it's Transatlantic Re division for $6 billion. However, Scor's approach was rebuffed by Alleghany.

I understand Adam's piece - here is a link http://www.insuranceinsider.com/alleghany-rejects-6bn-scor-bid-for-transre - is spot on and I can add some extra colour. Scor is being advised by Morgan Stanley and made an offer for Transatlantic Re, CapSpecialty and RSUI (all units of Alleghany). The Scor offer, I am told, was structured 80pc in cash and 20pc at a 15pc premium to book value.

My sources tell me Scor lobbed in an indicative bid at the end of the French company's fiscal year as it was looking to get a deal done that would bring several tax benefits.

The Scor bid was rebuffed and other predators are circling, such as Fosun.

For readers unfamiliar with Fosun, the Chinese group was set up with $4000 by four entrepreneurs in 1992 and is now worth over £7 billion.

Fosun hit the headlines recently after purchasing stakes in several high-profile companies, such as  London-listed Thomas Cook and Cirque du Soleil.

The Chinese group's largest insurance deals to date have been the $1.8 billion purchase of US insurer Ironshore and the EURO 1 billion takeover of Portoguese insurer Caixa Seguros.

The company has also publicly said it is interested in buying more insurance businesses - here is a WSJ piece on the topic:

http://www.wsj.com/articles/fosun-international-eyes-multiple-insurance-deals-1427460158

According to my sources, other potential bidders said be interested in bits of Alleghany include Swiss Re, who as we all know don't like me very much.

Goldman Sachs is said to have told bidders they need to make offers at a 20pc premium to book value to enter into talks with Alleghany.

I asked Swiss Re and Scor for comment. Both companies had the courtesy to respond and decline to comment.

I also asked Alleghany and Fosun on Wednesday morning for a comment. However, they have not responded to my repeated requests for comment.