£3 mooted for a K.O.29 Nov 2024 07:40
Under ‘put up or shut up’ takeover rules, Aviva now has until 5pm on Christmas Day to announce a firm bid or walk away. Aviva said that after the rejection of its offer this week, Direct Line had ‘declined to engage further’ with it.
However, it emerged that Aviva chair George Culmer met Direct Line chair Danuta Gray to discuss the offer, appearing to suggest that the latter was open to a deal of some sort.
Yesterday, Direct Line’s management was in talks with shareholders. Some, including Redwheel and Schroders, are also major investors in Aviva.
One top-20 shareholder in the target company told the Financial Times that most investors would probably accept a bid at 300p. Analysts at investment bank KBW also suggested Aviva could make a 300p valuation.