Wed May 13, 2009 11:23am EDT
* Swiss Re shares some 9 pct lower on talk of placement
* Traders say Swiss Re may place shares at 32 Sfr each
ZURICH, May 13 (Reuters) - Shares in reinsurer Swiss Re (RUKN.VX) fell 9 percent on Wednesday on talk the group would place shares at 32 Swiss francs each, traders said.
"We don't comment on market rumours," a Swiss Re spokeswoman said.
By 1448 GMT, Swiss Re shares had pared earlier losses to trade down 9.4 percent at 35.10 francs, while the Dow Jones Stoxx European insurance index .SXIP was 6.6 percent lower.
Swiss Re shares have outperformed peers and climbed from around 29 Swiss francs since the world's second-largest reinsurer posted better-than-expected first-quarter profit on May 7. [ID:nL6484808]
The shares fell to a record low of 11.88 francs in March in the aftermath of 6 billion Swiss francs in writedowns on risky and illiquid assets for 2008 which forced Swiss Re to turn to U.S. billionaire Warren Buffett for an investment at unfavourable conditions for the Swiss reinsurer. [ID:nL5719257]
(Reporting by Jason Rhodes and Rupert Pretterklieber; additional reporting by Blaise Robinson and Atull Prakash; editing by Elaine Hardcastle)
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