Greenlight Capital urges Brighthouse Financial to accept $70 buyout offer

Greenlight Capital sent a letter to Brighthouse Financial Inc.'s (NASDAQ: BHF) board of directors encouraging acceptance of a reported $70 per share cash offer from Aquarian Holdings.

The investment firm, which holds approximately 4.9% of Brighthouse's outstanding shares, stated the bid represents a 55% premium to the September 18 closing price. Greenlight President David Einhorn wrote that selling the company at this price would be in all shareholders' best interests.

According to the letter, Brighthouse has explored strategic alternatives for several months, with Aquarian emerging as a credible buyer. Einhorn characterized the insurance company as a "perennial disappointment for investors" since its 2017 spinoff from MetLife.

Greenlight noted that despite repurchasing 52% of its shares over eight years, Brighthouse trades at 32% of book value and 2.1 times 2026 consensus earnings per share, compared to 56% of book value and 6.4 times consensus 2018 earnings at the time of the spinoff. The share price as of September 18 was 30% lower than at the spinoff.

The firm stated Brighthouse has failed to attract public market confidence due to opaque accounting and inability to articulate an investment rationale. Einhorn expressed willingness to participate in financing for a private Brighthouse transaction.

Greenlight threatened to seek replacement of the entire board at the next annual meeting if directors do not act in shareholders' best interests. The firm has been among Brighthouse's largest shareholders since the 2017 MetLife spinoff.

The letter was made public as part of Greenlight's transparency efforts regarding the potential transaction.

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