By Michael Susin
Direct Line Insurance said its board unanimously rejected a takeover offer from the Belgian-French insurance company Ageas.
Shares at 1527 GMT were up 24% to 204 pence.
The nonlife insurer on Wednesday said it has received an offer on Jan. 19 comprised 100 pence in cash and one new Ageas share for every 25.24047 Direct Line share. This implied a value of 233 pence a share and a premium of 43% at the closing price on Feb.27 of 163.35 pence.
“The board considered the proposal with its advisers and considered it to be uncertain, unattractive, and that it significantly undervalued Direct Line Group and its future prospects while also being highly opportunistic in nature,” it said.
Direct Line advised shareholders to take no action in relation to the possible offer.
Ageas has until March 27 to either make a firm offer or walk away.
Write to Michael Susin at [email protected]
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