UK's Aviva contacts Direct Line investors as hostile takeover looms, FT reports (updated)

Ageas SA/NV

28/11/2024 18:40

(Adds Direct Line and Aviva shares in Paragraph 4 and 5, adds
details throughout)
       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".
    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; editing by
David Evans)
 ((DhanushVignesh.Babu@thomsonreuters.com;))