Aviva Share Discussion Threads

[richie1218] 06/10/2023 09:56

Aviva surges on takeover speculation
Fri, 06th Oct 2023

Aviva surged on Friday after markets blog Betaville suggested in one of its 'uncooked' alerts that the insurance group was at the centre of takeover talk.

Citing people following the situation, Betaville said there were rumours that Aviva has attracted interest from a company looking to purchase the business.

However, the identity of the company circling Aviva is unclear. Previous reports have suggested German insurance group Allianz has looked at buying a blue-chip London-listed insurer, such as Aviva.

French insurance giant Axa has also been acquisitive in the past, Betaville noted, having paid $15bn for Bermudan-based XL Group in 2018.

Other insurance firms that have been acquisitive in the UK insurance market include Canada's Intact Financial Group and Scandinavian firm Tryg, it said. They paid £7.2bn for London-listed RSA in 2020.

Intact Financial Group also recently bought Direct Line's brokered commercial lines operations for an initial payment of £520m to bolster its UK operations.

At 0940 BST, the shares were up 9% at 423.42p.

Russ Mould, investment director at AJ Bell, said: "Chatter that foreign players Allianz, Intact Financial and Tryg are among the potential interested parties has fired up the shares, hot on the heels of a bullish broker note earlier this week.

"What might they see in Aviva? Well, the business is forecast to have strong free cash flow and excess capital and its valuation is cheap. It has slimmed down in recent years to focus on the stronger parts of the group and there is now an opportunity to increase its position in bulk annuities which looks like a more prosperous market thanks to higher gilt yields.

"Activist investor Cevian Capital is no longer on the shareholder register causing mischief and Aviva is left as one of many stocks on the UK market looking unloved but still offering the potential for long-term value generation.

"One of the obvious times to buy a company is when it has made solid progress with a turnaround programme as that de-risks the investment case. Aviva has cast off the shackles of being a conglomerate and sharpened its focus as a result of asset disposals and a new impetus to grow, making it a stronger business. Naturally, that makes it more appealing to a would-be suitor."

[tuftymatt] 06/10/2023 09:48

AV. for me was always a buy and hold as it's a solid company with a solid divi too.

That said it's share price can get out of sync with it's perceived value which creates a chance to top up which I have done recently. If no bid comes off and it drifts back down then no problem as I carry on doing what I planned / am happy with.

If however a bid comes off then I take what I get and move on as I can't control that element.

Good luck all and I am betting we close up today!! 👍🏻

[lippy4] 06/10/2023 09:47

well never seen that before the share going up fast after paying the divi,only just bought in here at the at the begining of the year for the divi for income.

[smurfy2001] 06/10/2023 09:36

So Betaville, The Times, Bloomberg and now the Guardian.

18m ago
09.16 BST

In the City, shares in insurance group Aviva have jumped almost 8% this morning, lifted by takeover speculation.

The talk is that the likes of Allianz of Germany, Intact Financial Corporation of Canada and the Scandinavian group Tryg are considering their options, with at least one mulling a £6 a share proposal...

[babbler] 06/10/2023 09:33

The "rumour" isn't from this BB it's from the times and other websites.

[babbler] 06/10/2023 09:32

The director wouldn't have known at the time of buying shares.

[cestnous] 06/10/2023 09:31

So elephants can gallop sometimes

[spud] 06/10/2023 09:31

Exactly mark.spud

[bbd2] 06/10/2023 09:31

Surely the recent director transactions would rule out any formal bid discussions so unless a potential interested party shows their hand ( why would they) I guess we are in for a “ we know no known reason ….” RNS

[marksp2011] 06/10/2023 09:29

Depends if there are >2 bidders
maybe a bid flushes out others

Silly when all we have is a rumour on a BB that isn't exactly famous for accuracy

[kirkie001] 06/10/2023 09:23

Spud, if you genuinely think that 800p is possible in any way, shape or form, then I'll have a pint of whatever you're drinking....

[garycook] 06/10/2023 09:20

AV were 735p.I sold them. 06/11/2007 Sold S092458301 735.08p

[pvi1] 06/10/2023 09:17

I'm not selling just saying what I'm sure many others are thinking

[smurfy2001] 06/10/2023 09:16

Are they really going to leave us hanging over the weekend? 🤔

[spud] 06/10/2023 09:13

600p is about the minimum required to get it over the line imo (great for recent investors and general penny punters) but for those longtermers with a six figure plus investment here, not quite so.


You have to bear in mind that this Company is about as gilt edged as it gets in this Market atm, offering a great yield and growth prospects to boot. Sure you could find plenty of other companies to invest the proceeds of a successful t/o in, but none with the pedigree and peace of mind that this undervalued outfit engenders.


I’m hopeful that any bid will flush out further suitors who just can’t pass on the inherent value. If that is so, 800p is eminently feasible, a price that would properly and fairly compensate holders for the loss of a worry-free, well run, high yielding company with terrific growth prospects (that also allows sound sleep at night).


We shall see.


spud

[oggyrocks] 06/10/2023 09:08

Pvi1 - this is what we have been waiting for and why we invest. If you sell and miss out you will have fomo for rest of your investing experience.

[plunger2] 06/10/2023 09:07

Count me in for £6 minimum if it happens.
I can't see Amanda recommending less.
LSE is trounced. Foreign bids will be the menu du jour for a year or two.

DYOR

[marksp2011] 06/10/2023 09:07

Yep
I am in the same boat
BBerg are saying "it is all very vague" and they have contacted Aviva for comment.

If AV say...nah! this will be 380 in minutes.
If they say something else it is off to the races

[pvi1] 06/10/2023 09:05

Do I sell now because its all a rumour and buy back at 380 in a couple of weeks. Do I wait for 650 buy out and retire in the sun.Whichever I choose will be the wrong decision.

[smurfy2001] 06/10/2023 09:04

On Bloomberg live.



Bloomberg have reached out to Aviva for comment.
Also mentioned the times as well.

[cyberian] 06/10/2023 09:02

I guess that the CEO would not have to make any comment on this rise unless talks are in progress. The shares have been undervalued for some time having been up to close to 450p at one time in the last year. Fingers crossed and well done eurofox (hope you are feeling better) and CWA1.

[marksp2011] 06/10/2023 09:00

let me sell you divi reinvestment shares at 418 before the share price drops back to 380

Come here little sheep :)