Aviva shares fall due to concerns about mooted Friends Life takeover
Aviva shares fall as much as 4.4% while Friends Life shares rise 7.4%
Takeover of Friends Life Group by Aviva would be the biggest takeover in the UK insurance industry in 15 years and create a company with 16 million customers. Photograph: Matthew Lloyd/Bloomberg
Aviva plc, Britain’s second biggest insurer by market value, fell the most since July in London trading after saying it was in talks to buy Friends Life for about £5.4 billion (€6.8 billion) in stock.
Aviva said after trading closed on November 21st that it was offering 0.74p for each share in Friends Life, whose investors would own about 26 per cent of the combined company. At last week’s closing share prices, the offer was worth 398.9 pence, a 15 per cent premium.
Shares in Aviva fell as much as 4.4 per cent, while Friends Life rose 7.4 per cent to 369.1 pence, the biggest gain in two years.
The transaction would be the biggest takeover in the UK insurance industry in 15 years and create a company with 16 million customers. – (Bloomberg)