Direct Line Shares Rise on Revised Aviva Bid

The new proposal is about 4% higher than Aviva’s initial cash and stock proposal of 250p per share last week, or £3.26 billion.

Alliance News 6 December, 2024 | 9:11AM
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City of London

Aviva AV. has increased its offer for Direct Line Insurance Group DLG to around £3.4 billion, Bloomberg reports.

Bloomberg sources that London-based Aviva has made a fresh bid of about 261p per share as it seeks to secure the backing of Direct Line’s board.

The new proposal is about 4% higher than Aviva’s initial cash and stock proposal of 250p per share last week, or £3.26 billion, which was rejected by Direct Line.

Under the plan Direct Line shareholders would be entitled to receive 112.5p per share in cash and 0.282 of a new Aviva share for each Direct Line share.

Shares in Direct Line initially rose more than 7% on the news before settling 0.5% higher at 238.00p in London. Aviva was 1.2% higher at 486.19p.

Last week Aviva said it was a “highly attractive” and “compelling” offer with “high execution certainty”.

But Direct Line dismissed it as “highly opportunistic” and said it “substantially undervalued the company.”

Direct Line has undertaken a strategic revamp under the stewardship of Chief Executive Adam Winslow, who the firm poached from potential suitor Aviva. Winslow had been CEO of UK & Ireland General Insurance for Aviva.

By Jeremy Cutler, Alliance News reporter


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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Aviva PLC474.00 GBX-0.34Rating
Direct Line Insurance Group PLC247.00 GBX0.00Rating

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