Aviva investors tell RSA to up £5bn offer

first_img Show Comments ▼ Tags: NULL Share Sunday 15 August 2010 11:10 pm Aviva investors tell RSA to up £5bn offer KCS-content center_img whatsapp Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailUndoNoteabley25 Funny Notes Written By StrangersNoteableyUndoBetterBe20 Stunning Female AthletesBetterBeUndoautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comUndoAtlantic MirrorA Kilimanjaro Discovery Has Proved This About The BibleAtlantic MirrorUndoTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoElite HeraldKate Middleton Dropped An Unexpected Baby BombshellElite HeraldUndoTrading BlvdThis Picture of Prince Harry & Father at The Same Age Will Shock YouTrading BlvdUndoTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmUndo whatsapp More From Our Partners Killer drone ‘hunted down a human target’ without being told tonypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org INVESTORS in Aviva have said rival RSA must increase its £5bn offer if it wants to walk away with the insurer’s property and casualty business.Aviva immediately rejected the surprise offer for its general insurance arms in the UK, Ireland and Canada, made in a letter from RSA chairman John Napier last month. There are no ongoing discussions between the companies, but some Aviva shareholders said they would be open to a sale at a better valuation.“It’s trading at a pretty big discount to what you’d imagine the sum of the parts would be, and somehow they’ve got to find a way to release that,” said Jane Coffey at Royal London Asset Management, which owns shares in Aviva. “There is a price for everything,” Coffey added, but insisted a serious offer would have to be at a higher price. Analysts at Merrill Lynch reckon Aviva’s general business is worth just under £6bn.Colin Morton, a fund manager at Rensburg, which owns RSA shares, said in principle he supported the group’s pounce on Aviva. “[But] there are concerns… and they would have to give us a convincing argument as to how they could run the business better than Aviva,” he said.RSA has lined up BNP Paribas, Deutsche Bank and HSBC to underwrite a £5bn rights issue to fund the takeover. It estimates a tie-up would save around £300m in cost synergies.“The reason Aviva has given the rejection is that it doesn’t want to sell. It’s totally up to the Aviva shareholders now, if they think this deal is important,” said a person close to the situation. Aviva, the only insurer in the UK still offering both general and life insurance, maintains its general arm is important for generating cash and meeting capital requirements. last_img

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