Finance
Aviva sweetens Direct Line bid to $4.33 billion, Bloomberg News reports
Quick Summary
(Reuters) -Insurance company Aviva has sweetened its bid for UK’s Direct Line to about 3.4 billion pounds ($4.33 billion), or 261 pence per share, Bloomberg News reported on Thursday, citing people familiar with the matter.
(Reuters) -Insurance company Aviva has sweetened its bid for UK’s Direct Line to about 3.4 billion pounds ($4.33 billion), or 261 pence per share, Bloomberg News reported on Thursday, citing people familiar with the matter.
The new offer is about 4% higher than Aviva’s initial offer, according to the Bloomberg report.
The revised proposal comes a week after the home and motor insurer rejected the cash-and-share offer of 250 pence from Aviva, calling the deal “highly opportunistic” and one that “substantially undervalued” the company.
Direct Line and Aviva declined to comment.
Under British takeover rules, Aviva has until Dec. 25 to make a firm offer or walk away.
In March, Direct Line rejected a takeover bid of 239 pence per share from Belgian rival Ageas, which is around 8.4% lower than Aviva’s latest 261 pence per share offer.
($1 = 0.7851 pounds)
(Reporting by Anandita Mehrotra in Bengaluru; Editing by Shailesh Kuber and Alan Barona)
Frequently Asked Questions about Aviva sweetens Direct Line bid to $4.33 billion, Bloomberg News reports
1What is a merger?
A merger is a business combination where two companies join to form a new entity, often to enhance market share, reduce competition, or achieve synergies.
2What is an acquisition?
An acquisition occurs when one company purchases another company, gaining control over its assets and operations, often to expand its market presence or product offerings.
3What is a bid in finance?
A bid is an offer made by an investor or company to purchase a security or asset at a specified price, often used in the context of mergers and acquisitions.
4What is a share?
A share represents a unit of ownership in a company, giving shareholders a claim on part of the company's assets and earnings.
5What is a takeover?
A takeover is an act of acquiring control of a company, typically through purchasing a majority of its shares, which can be friendly or hostile.
