Aviva has launched a £3.3billion takeover bid for its rival Direct Line, in an attempt to create one of Britain's largest car insurance companies.
The cash-and-shares proposal valued the motor and home insurer at 250p a share, the FTSE 100 company said on Wednesday evening.
However, the offer was rejected by Direct Line on Tuesday but Aviva signaled that it was still interested in a deal, arguing that a takeover “would deliver attractive returns” for both sets of shareholders.
Direct Line told its investors in a separate statement that Aviva’s bid was “highly opportunistic and substantially undervalued the company”.
The company described the offer as “unsolicited, indicative and conditional”.
It added: “The board has considerable conviction in the capabilities of our newly established leadership team and stands firmly behind their delivery of our strategy.”
This is the second time this year that Direct Line has rejected a potential takeover bid after a Belgian insurer tried to acquire the business for £3.2billion back in March.
FTSE 100
The UK's flagship share index, the FTSE 100, was down xxxxxxx shortly after opening this morning.
Brent crude oil futures were down 0.26%, trading at $72.68 a barrel.
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