Aviva Share Discussion Threads

[dope007] 28/11/2024 08:04

I can understand the logic here as they buy it on the cusp of a turnaround and add their own scale and savings to it. Just don't overpay

[simon8] 28/11/2024 07:57

Let's hope if it goes through Aviva doesn't end up paying too much...usual response from target that it indervalues the company... how much will Aviva pay before walking away...these deals don't always end well for the buyer.
I was hoping that Aviva would be the target for someone else!

[muscletrade] 28/11/2024 06:05

Direct Line rejects GBP3.3 billion bid approach from Aviva
November 27, 2024 at 07:30 pm
Share
(Alliance News) - Aviva PLC on Wednesday said it had made an approach to buy Direct Line Insurance Group PLC, which had been rejected.

London-based Aviva said the cash and shares proposal was made last Tuesday. Direct Line shareholders would be entitled to receive 112.5 pence per share in cash, and 0.282 new Aviva shares per Direct Line share.

Based on Aviva's share price on the day before the proposal was submitted, the plan valued Direct Line at 250p per share or around GBP3.26 billion.

Aviva said it was a "highly attractive" and compelling" offer with "high execution certainty", which also met Aviva's strict financial criteria for acquisitions.

But Aviva said Direct Line on Tuesday had rejected the proposal as substantially undervaluing Direct Line, and has declined to engage further with Aviva.

In a statement, Direct Line, the Bromley, England-based motor and home financial services group, said it had concluded that the plan was "highly opportunistic and substantially undervalued the company."

"The board has considerable conviction in the capabilities of our newly established leadership team and stands firmly behind their delivery of our strategy. Under this strategy, the company continues to make early progress towards our financial targets, and expects to deliver attractive growth in profitability, capital generation and shareholder returns," Direct Line stated.

In March, Ageas AG withdrew a proposed bid for Direct Line after failing to secure the backing of its UK peer.

The Belgian insurer had made two proposals to buy Direct Line, but its advances were rejected. The two approaches valued each share in Direct Line at 233p and 239p per share respectively.

Direct Line rejected both, describing them as "uncertain" and "unattractive", significantly undervaluing its future prospects.

Direct Line has undertaken a strategic revamp under the stewardship of Chief Executive Adam Winslow, who the firm poached from potential suitor Aviva.

Aviva believes the acquisition would be consistent with its strategy to accelerate growth in its UK businesses and further pivot the group towards capital-light business lines.

The acquisition would expand Aviva's presence in the attractive UK Personal Lines market. In addition, the acquisition would allow Direct Line customers to benefit from Aviva's breadth, scale and financial strength.

Further, a deal would deliver "material cost and capital synergies, incremental to Direct Line's existing cost savings programme, Aviva stated.

Aviva said it remains committed to delivering growing dividends and sustainable capital returns to its shareholders.

Aviva closed 1.6% higher at 489.50 pence on Wednesday. Direct Line closed 0.2% lower at 158.70p.

By Jeremy Cutler, Alliance News reporter

[tuftymatt] 28/11/2024 05:33

Yes the AV. price rising yesterday and DLG not does show how this was kept all in house and didn't leak out for once.

Agree AV. will fall a bit and DLG should jump at the open. From a personal level my DLG cost to buy amount is 30% lower than AV. due to DLG being what I class as a pain trade in recent years. Another chance again to rescue that in 2024 has to be a good thing and if it means more AV shares and a return of capital I will be very happy to be out of the woods.

Good luck all 👍🏻

[whatsup32] 27/11/2024 21:00

It’s opportunistic and good decision by Aviva . Unfortunately I can see Aviva dropping at open

[smurfy2001] 27/11/2024 20:46

Might buy some DLG shares if they are still where they are ;)

[spud] 27/11/2024 20:09

Hopefully AV have enough savvy not to chase their initial Bid, like a 17 year old at their first hot hatch auction. spud

[t-trader] 27/11/2024 19:59

They did a good job of hiding those discussions from the market!

Fantastic deal IMHO for DLG shareholders

Amazed DLG rejected it, but at the same time am relieved due to being only an AV. shareholder as would likely see a drop tomorrow

[engelbert1969] 27/11/2024 19:48

Holy shoot

[waterloo01] 27/11/2024 19:31

Would the cma approve?

[tuftymatt] 27/11/2024 19:10

As a holder of DLG I would be happy to take the offer and end up with more AV. shares too.

The share price has sunk since the bid earlier in the year and I can't see it going above 250 for a long time to come without being taken out.

Good luck all 👍🏻

[igoe104] 27/11/2024 19:07

Offer looks to be rejected.

[smurfy2001] 27/11/2024 18:27

Bloomberg reporting £3.3bn offer rejected.

[smurfy2001] 27/11/2024 18:21

I'm presuming that would dilute existing Aviva shareholders by roughly 360m shares (l don't have exact share count in hand for DLG).

[lord gnome] 27/11/2024 18:16

What a surprise. Good time to buy Direct Line while it's on its knees.

[smurfy2001] 27/11/2024 18:13

Wow. It seems dilutive though?

[killing_time] 27/11/2024 17:59

Aviva just bid for Dirct line insurance

[cwa1] 27/11/2024 09:02

Keefe, Bruyette & Woods increase their price target for Aviva from 495p to 545p

[tornado12] 21/11/2024 14:47

My hope is Aviva and the other big pension funds are more that careful when looking at the green funds and government incentives to put our money into them. Carbon capture is a great example and as long as Carbon credits are not a competitor to Bitcoin, I do not see where the value will come from long term: the risk of future government and policy changes is extremely high. You only have to look at the EV car industry to see the chaos government policies have created in UK & EU

[cyberian] 20/11/2024 17:33

Nah!! it's the plastics that find their way into our black bin liners and difficult or impossible to extract. We just have to find a better way to keep un-recyclable items out of our rubbish. A lesson learned here by Aviva and will not happen again. Thankfully other funds in question may be invested in Nvidia over the last 3 years and latter's figures may help!!!

[spawny100] 20/11/2024 16:46

Kind of fairly on topic spud if companies like AV and LGEN are getting sucked into investing in green Ponzi schemes to fulfill their ESG obligations?

[spud] 20/11/2024 16:37

On topic please chaps.

Ta.

Spud

[scobak] 20/11/2024 15:49

What a tit.

[bracke] 20/11/2024 15:41

cyberbub


Agree recycle but we are unable to recycle everything.

What do we do with the unrecyclable?