UK's Aviva contacts Direct Line investors as hostile takeover looms, FT reports
Updates with Aviva's response
Nov 28 (Reuters) -Insurance company Aviva AV.L has contacted investors in bid target Direct Line DLGD.L, a move that could pave the way for a hostile takeover of the smaller rival, the Financial Times reported on Thursday.
Aviva said late on Wednesday it made a 250-pence cash and share offer for Direct Line on Nov. 19.
The offer was at a nearly 60% premium to Direct Line's closing price on Nov.18 and was rejected. Direct Line said the proposal was "highly opportunistic".
Aviva declined to comment on the FT report.
On Thursday, shares in Direct Line jumped 41.4% to 224.4 pence at 1801 GMT, its highest level since March 13 this year.
Meanwhile, Aviva’s shares dropped about 2% to 479.5 pence, placing it among the top losers on the FTSE 100 index .FTSE.
If the deal had gone through, Direct Line shareholders would have received 112.5 pence in cash and 0.282 new Aviva shares for every Direct Line share held.
In March, Direct Line rejected a takeover bid from Belgian rival Ageas AGES.BR, which was 4.6% lower than Aviva's offer on Wednesday.
Reporting by DhanushVignesh Babu in Bengaluru,additional reporting by Judes Joseph; editing by David Evans
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
