Paying possibly a little more may have discouraged other possible suiters to make offers ??
This marriage may also have smooth union with both sides operating systems been comparable and deal agreed .
Short term pain long term gain. |
No spud, if it was cheap then maybe a good deal. They played too nicely and got squeezed; they should have been doing the squeezing.It will balance after a couple of years, but this board need to remember they work for the shareholders. |
If the T/O of DLG goes through OK and leverage increases a tad it's a better use of funds in my mind than being leveraged in to having to support Govt sponsored small caps with requisit support musterred by Rachel R! |
Imo the bid going through and the dilution in the av price is largely already in todays price. There is a small discount for the execution risk offset by the upside potential if the deal falls apart.
The av. price will be subdued until they issue the first results of how the integration / cost savings are progressing which will be well into 2025. |
Anyone any ideas/guesses where the share price will be on the official bid? Also taking into account the dilution? |
Spud, you are not alone on the DLG deal. I prefer Aviva to grow their long term revenues through PRT and the private health businesses. I see these as excellent long term robust revenues with lower short term impact from local & world events… however, impressed with Amanda and plan to keep my holding long term with adding on occasions GLA |
Sir Clive Cowdery set for bumper windfall on £8.3bn sale of insurance firm Resolution Life to Japanese rival
The deal comes amid a spate of takeovers across the world including the recent £3.6billion bid by UK insurer Aviva for smaller, struggling rival Direct Line. |
I surely can't be the only cynical one regarding the potential DLG acquisition can I?spud |
A firm offer (assuming one is to be made) must be made by 25/12. They've got Santa working on it. |
Are there any indications on the timetable for the next takeover steps ? |
The risk is it doesn't happen. I'm keeping my Aviva stock |
*JEFFERIES RAISES AVIVA PRICE TARGET TO 560 (550) PENCE - 'BUY' |
That’s a good position to be in! Nicely done |
Rightly or wrongly, I've sold out of av. today and kept my dlg.
I think the risk is currently with av.
And if nothing else, I'll get some av shares again next year in any case :-) |
I'd agree, but they're looking for more acquisitions, which will need funding.I do not see dividends going higher, I see capital growth. |
I have no doubt that buybacks are off the table for the next two to three years given the use of capital to finance the acquisition. That said, given that EPS is set to get a double digit uplift post the acquisition I do not see any reason to expect the dividend per share to not continue to grow. |
Thanks - some interesting reading. |
Aviva boss Amanda Blanc seeks more takeover targets after Direct Line deal
Can the Aviva share price smash it again next year? The experts have spoken |
The article mentioned in post 20457 :-
. |
Cardinal, the good bit is 18 months or so away, for now it means diddly squat. A pay now (lower share price) reap later (bigger dividend).They have overpaid in my opinion; they played nicely. All this, and the CMA can stick their oar in when it goes to them.Don't get me wrong, the BOD had to do something as the sediment was starting to settle, plus there's further reporting that they are open to more acquisitions.Patience. |
The basic question for me is how will I, as an AV shareholder, benefit from this takeover. Cost synergies will presumably be spelled out in the prospectus but what about the risk to the dividend a long drawn out CMA review and possibility of rejection due to market share.
As of now I am not convinced. |
The basic question for me is how will I, as an AV shareholder, benefit from this takeover. Cost synergies will presumably be spelled out in the prospectus but what about the risk to the dividend a long drawn out CMA review and possibility of rejection due to market share.
As of now I am not convinced. |
Cross selling opportunities are overrated usually driven by the marketing dept. The key in motor will be a continual focus on cost reduction. If they just by the book and kill off the rest then this could be a good deal. |
Sunday Times "Drivers on hold in mega merger" " Dial M for Merger"
Argues pro's and con's of the deal. 2 pages. Reads good .
"Direct line is over manned.Too many HR, too many managers"
On the question of will quotes get higher with less competition " it can be argued with cost cutting and stream lining , with greater scale they'll be even more competitive"
On the question of government claiming profiteering.
Industry says " every £1.13p paid out in claims and expenses insurers received just £1 in premiums"
Begs the question as to why our Dame wants to buy DLG. |
The Aviva-Direct Line deal will face scrutiny by the Competition and Markets Authority (CMA) amid justified concern that the presence of much bigger beast in the marketplace could mean higher premiums.
There is confidence at Aviva that it can demonstrate to the CMA that there is already ferocious competition in the markets for motor and home insurance.
When examined on a segmented basis, such as EVs, women and younger motorists, there should be no problem. But caution is called for. |
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