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Aviva PLC has increased its offer for Direct Line Insurance Group PLC to around £3.4 billion, Bloomberg reported. Bloomberg sources that London-based Aviva has made a fresh bid of about 261 pence 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 112.5 pence 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. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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