Allianz SE (AZSEY) shares edged higher in Frankfurt Tuesday after a unit of Europe's biggest insurance group reached an agreement with Bill Gross over his departure from Pacific Investment Management Co. in 2014.
PIMCO, the world's biggest bond fund which is wholly-owned by Allianz, parted ways with Gross two and a half years ago amid accusations of poor leadership skills and dwindling returns at its flagship Total Return Fund, which Gross managed. The 72-year old Gross, who now works for Janus Capital, filed a $200 million lawsuit against PIMCO in 2015, while the fund hit back with accusations of "egregious miscount" and abusive behaviour.
"Although the settlement's terms are confidential, Mr. Gross and PIMCO confirmed that any proceeds from the suit will be donated to charity, as Mr. Gross had promised since the beginning of the suit," PIMCO said in a statement posted on its website. "PIMCO recognizes the enormous contribution to its success made by Mr. Gross and its other founders and leaders, such as James Muzzy, William Podlich, Bill Thompson, Walter Gerken, and Chris Dialynas, the visionaries who created a global investment powerhouse, and an entire industry of fixed-income investments."
"Bill Gross has always been larger-than-life," said PIMCO CIO in a statement. "He has a well-deserved stellar reputation as an investor and a philanthropist. Bill has had an enormous influence on PIMCO and the careers of many who have passed through its halls. He built this business from the ground up and we have great respect and admiration for his talents."
Allianz shares gained around 0.4% in the opening two hours of trading in Frankfurt to change hands at €170.22 each, extending their three-month gain to just over 9.5%.