British insurer Aviva said on Wednesday that smaller rival Direct Line Insurance had rejected a 3.28 billion pound ($4.16 billion) takeover offer.
Aviva made an offer of 250 pence per share on November 19 and the price represented a premium of almost 60% to the stock’s close on November 18.
Had the transaction been completed, Direct Line shareholders would have received 112.5p in cash and 0.282 new Aviva shares for each Direct Line share held.
The life, auto and home insurer said Direct Line rejected the offer on Nov. 26, saying it undervalued the company, and refused to enter into further discussions.
Direct Line did not immediately respond to a Reuters request for comment.
The information was first reported by Bloomberg News on Wednesday.
Direct Line, headquartered in London, has been working to turn around its cost-burdened business after rebuffing a takeover attempt by Belgian rival Ageas in March.
The insurer announced plans to cut 550 positions in early November, as its underperforming auto insurance business continues to weigh on the business.
($1 = 0.7891 pounds)
Swiss
