Direct Line Insurance Share Discussion Threads

[alex1621] 27/11/2024 23:29

Aegis did not want to go hostile. I wonder if Aviva will?

[pete160] 27/11/2024 23:09

An offer for dlg worth possibly 245 (once the av price drops) may well bring aegis back for another look at dlg,Hasn't their price risen markedly since their previous tilt at dlg, so either a cash or cash and share offer may be easier to justify to its large Chinese shareholder?

[justiceforthemany] 27/11/2024 22:50

Yet another FTSE company not disclosing bids and is happy to have their share price languish 60% below the offer price.

Should be illegal and the board are clearly selfish and shameless.

[alex1621] 27/11/2024 22:27

The Times reporting that "Aviva signalled in a statement to the stock exchange after the market closed on Wednesday that it was still interested in a deal ...". I suspect another offer will come in before Christmas. It helps matters that the CEO is ex Aviva.

[boonkoh] 27/11/2024 22:17

A key question is whether Aviva shareholders will back the deal, given that there will be huge issuance of new Aviva shares to fund this takeover/merger.Not surprised the DLG board rejected. Language used is boilerplate. Always reject the first bid. If this was Aviva final offer price there will be another chance for DLG to accept. Think it will be sweetened, either more pence, or more mix of cash rather than shares. (i hold in the Boon Fund)

[longwell] 27/11/2024 21:19

The board are idiots.2nd bid rejected and share price languishing when takeover not in play.They are delusional if they expect share price to be anywhere near 2.50 under their management?.How much are they getting paid to lose the shareholders money.

[wessie] 27/11/2024 20:44

Anyone have a list of the major shareholders?

[carpingtris] 27/11/2024 20:42

Interesting times again!

Hoping AV. come back with an improved offer and puts us out of our misery or anyone else thinking about it steps forward.

[laurence llewelyn binliner] 27/11/2024 19:46

#jrphoenixw2, given that AW came from Aviva, and has recruited some of his new team from there as well, he has a lot to prove and needs time to do it..

Bio - Adam Winslow became Chief Executive Officer of Direct Line Group in March 2024. He brings extensive financial services and insurance expertise gained over 20+ years in the sector. He joined DLG from Aviva where he was CEO of UK & Ireland General Insurance..

Bio - Jane Poole joined DLG as Group Chief Financial Officer (CFO) in October 2024, bringing over two decades of experience in financial services and general insurance. Since 2021 Jane served as CFO for Aviva UK and Ireland General Insurance..

We can only sit back and watch, get off on a spike IF it happens to get near 250 pence, have confidence and wait for the turnaround 25/26, or end up with AV shares instead if accepted, no bad options really, as a holder for income the AV 7% yield is way better than what we are currently getting here.. :o)

[cogs1] 27/11/2024 19:34

Interesting stuff here. I'm a fairly new investor in stocks, but do have holding in DLG...looking for some advice/opinion please. I ended up kicking myself last time we went down this road...last minute decided not to cash in when share price rised after last offer, then ended up regretting it. Looks a great offer (250) but can see that DLG still talking rubbish "substantially" undervalued - really!!! And as such, feel they will try to block any reasonable offer put forward. So, what options do Aviva have...could they go hostile? Is that a realistic possibility? Could big DLG shareholders influence the board to see sense? I'd love to see this deal done but can't assess the chances of success or when to cash out tomorrow if the price shoots up. Cheers

[huckers] 27/11/2024 19:07

250p looks fair to me. Hopefully, Aviva take the time and return with a mildly improved offer (something nearer 260p?) which is then taken to the institutional investors.

[tuftymatt] 27/11/2024 19:07

Interesting news and lets see how it plays out this time then!!

I would be happy getting more AV. shares too but maybe it opens up other offers??

Good luck all 👍🏻

[jezza123] 27/11/2024 19:05

Why isn't a bid put out to a vote to the shareholders - rather than the blokes who don't want to give up their huge salaries making the decision?

[value hound] 27/11/2024 18:56

DLG's response... "The Board considered the Proposal with its advisers and concluded that it was highly opportunistic and substantially undervalued the Company.


"There can be no certainty that any firm offer will be made..."

Arrogant nonsense?

[jrphoenixw2] 27/11/2024 18:47

LLB: 'They must have very good reasons, our new helmsman Winslow has only been in the chair 6 months, slowly'...

Might that be a core reason, his ego? That he'd have to 'accept surrender' before having a chance to show what he *might* be able to achieve some way down the line?

[jrphoenixw2] 27/11/2024 18:42

Subsequent RNS received: 6.36pm
--------------------------------
27 November 2024
Direct Line Insurance Group plc ("Direct Line Group" or the "Company")

Response to Statement by Aviva plc ("Aviva")

The Board of Direct Line Group (the "Board") notes the recent announcement made by Aviva plc ("Aviva") regarding a possible offer for the Company and confirms that on 19 November 2024 it received an unsolicited, indicative and conditional cash and share proposal from Aviva to acquire the entire issued and to be issued share capital of Direct Line Group (the "Proposal").

As set out in the Aviva announcement, the terms of the Proposal comprised 112.5 pence in cash and 0.282 new Aviva shares for every Direct Line Group share. The Proposal implied a value of 250 pence per Direct Line Group share (based on the closing price of Aviva shares on 18 November 2024).

The Board considered the Proposal with its advisers and concluded that it 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.

As such, the Board considered the Proposal to not reflect the standalone value that can be delivered by the Company, and hence considered the possible offer highly opportunistic in nature. Accordingly, the Board unanimously rejected the Proposal on 26 November 2024.

There can be no certainty that any firm offer will be made and, save as set out in the Aviva announcement dated 27 November 2024, nor as to the terms on which any offer will be made.

In accordance with Rule 2.6(a) of the Code, Aviva is required, by not later than 5.00 p.m. on 25 December 2024, to either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer for the Company, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel on Takeovers and Mergers in accordance with Rule 2.6(c) of the Code.

For the purposes of Rule 2.5(a) of the Code, this announcement is not being made with the approval of Aviva.

As a consequence of this announcement, an 'offer period' has now commenced in respect of the Company in accordance with the rules of the Code and the attention of shareholders is drawn to the disclosure requirements of Rule 8 of the Code, which are summarised below.

[jrphoenixw2] 27/11/2024 18:36

Roll up, roll up, where will the share price be tomorrow at 11am?

I'm guessing 192p. .... All things considered!, (or not).

[jrphoenixw2] 27/11/2024 18:29

This reminds me of the previous spurned bid. I can understand teasing the opening bid higher, but outright rejecting it and 'declining to engage further'... ? That seems an unusually blunt and bullish initial response from a company that in recent times has been, er ... rather languishing.

[speedsgh] 27/11/2024 18:18

Well, LG, they clearly didn't have the best interests of shareholders at the forefront of their minds... imo.

[lord gnome] 27/11/2024 18:17

Turning down 250p? What were they thinking.

[speedsgh] 27/11/2024 18:17

If we get a chance to vote, which it would appear that Direct Line will try to deny us if they get their own way, I will be happy to accept their offer. I would trust Amanda Blanc and her team to make a better fist of turning the Direct Line ship around and maximising its potential.

[value hound] 27/11/2024 18:01

Superb result IMO - quite happy to hold a few more Aviva and so glad I bought more two weeks ago at 150p thanks largely to WBA1's excellent analysis.

[laurence llewelyn binliner] 27/11/2024 17:59

There we go, we should have an interesting open in the morning.. :o)

• 112.5 pence per Direct Line share in cash, funded through Aviva's internally available cash resources

• 0.282 new Aviva shares per Direct Line share

The proposal represents total consideration valued at 250 pence per share

However, on 26 November 2024, the Board of DLG rejected the proposal as substantially undervaluing Direct Line, and has declined to engage further with Aviva..

[salamander69] 27/11/2024 17:57

250p made up of cash and shares - I think it will be taken out at this offer? Thoughts?

[salamander69] 27/11/2024 17:55

Aviva bid - Aviva plc RNS outPossible Offer for Direct Line Insurance Group plc