Australia's Challenger rejects Daiichi Life unit takeover bid, but open to further talks

Challenger

Sun 23:26

Oct 26 (Reuters) - Australia's Challenger CGF.AX said on Monday an indicative proposal from a unit of Japan's Daiichi Life 8750.T to buy more than 79% of shares in the Australian investment manager is "not at a level it could recommend to shareholders". 
Earlier this month, TAL Daiichi Life Australia made an indicative proposal of A$11.80 per share, valuing Challenger at A$7.94 billion ($5.58 billion).
Challenger said on Monday its board intends to engage with TAL Daiichi Life Australia Pty to see whether a proposal can be reached "that the board could recommend."
"There is no certainty that the proposal will result in a binding offer or that any transaction will eventuate," the Australian firm said in its statement.
Shares of Challenger were down as much as 1% to A$11.80 per share by 2313 GMT.
Japanese insurer Daiichi Life, the parent firm of TAL Daiichi Life Australia, did not immediately respond to a Reuters request for comment.
($1 = 1.4241 Australian dollars)

(Reporting by Shivangi Lahiri in Bengaluru; editing by Lincoln Feast.)
((Shivangi.Lahiri@thomsonreuters.com;))