Insurer Direct Line rejects Aviva's $4.16 billion takeover bid (updated)

Ageas SA/NV

27/11/2024 18:33

(Changes sourcing, adds details throughout, response from
Direct Line in paragraph 5)
       Nov 27 (Reuters) - British insurer Aviva  AV.L  said on
Wednesday smaller rival Direct Line Insurance  DLGD.L  had
rejected a 3.28-billion-pound ($4.16 billion) takeover offer
from the company.
    Aviva made the 250-pence-per-share offer on Nov. 19 and the
price represented a nearly 60% premium to the stock's close on
Nov. 18.
    If the deal went through, Direct Line shareholders would
have received 112.5 pence in cash and 0.282 new Aviva shares for
every Direct Line share held.
    The life, motor and home insurer said Direct Line rejected
the offer on Nov. 26 saying it undervalued the company, and
refused to engage in further discussions.
    Direct Line did not immediately respond to a Reuters request
for comment.
    The development was first reported by Bloomberg News on
Wednesday.
    London-based Direct Line has been focused on turning around
its cost-burdened business after rebuffing a takeover attempt
from Belgian rival Ageas  AGES.BR  in March.
    The insurer announced plans to cut 550 roles earlier in
November as its underperforming motor insurance arm continued to
weigh on the business.
    


($1 = 0.7891 pounds)

 (Reporting by Raechel Thankam Job; Editing by Devika Syamnath)
 ((RaechelThankam.Job@thomsonreuters.com;))