Direct Line Insurance Takeover Rumours (DLG)

And they will probably have extended notice periods in their contracts which will have to be paid up. I worked for a company taken over by NU in the 90s and the exec contracts were amended weeks before the takeover became known to require 12 months notice. The compensation for the notice period included another 12 months pension accretion, options and other fringe benefits as well as core salary.

Yes they're loaded up with options and it's usual practice for it to be written in to the exercise conditions for director options that in the event of a takeover the options crystallize at the offer price, so they are not likely to do badly out of being taken over in that respect given the options held imv.

Perhaps those directors have nice offers within their contracts, in the event of a takeover. Its fairly normal to get paid for failure, so there can’t be a problem with being paid for getting no results at all.

I am here to make a quick profit on this arbitrage opportunity therefore will not wait or hold for deal to complete . although there is some risk ie AV might pull out before 25 Dec or CMA might block this deal but the risk can be predicted . However , Aviva will go ahead with the takeover offer as it has lots to gain further it won’t came out with a joint RNS last Friday . As for CMA , it would pass too as both Aviva and Direct Line have just about 20% of the market share and Admiral is pushed into second with 10 %. I would be worried if the market share is 40% or over . 20% is only one fifth and it won’t have too much of a dominant influence on prices and scuffle competition .imo

Adam Winslow would definitely play a role in this merger deal due to the limited time frame for a proper due diligence on DLG to be carried out . This takeover deal is to me a ‘stitch’ up deal as DLG major shareholders wanted this merger to happened and won’t support a medium term turn around . One can see that no RNS was out on the 2nd offer of £2.61 which was out on the 5th Dec ( Thursday late afternoon ) but then the next morning on the 6th Dec( last Friday)an improved 3rd offer of £2.75 was announced . Aviva and DLG came out to gave a joint RNS at 7am of the preliminary agreement agreed , Therefore between the afternoon 5Th Dec and the early morning of 6th Dec a closed door deal was shake hands . .

https://www.thetimes.com/business-money/companies/article/direct-line-founder-backs-aviva-takeover-75lq5ptpw

AV takeover of DLG will definitely pass CMA - Only a few days ago , CMA approved Vodaphone and Three merger and both these companies had 61% coverage of the mobile network. This deal to me is 99% sealed and done . imo . Any fall in the DLG share price before the Aviva’s confirmation next week , is a golden opportunity to add.

Who say so that you can’t buy 10000 DLG shares . I just bought at 15 seconds before closing another lot of 10000 shares at £2.50945 from ii for your information. Even 100000 shares- ii will buy for you if you have the available funds in ii account. Share Price is now in the bargain zone , although there is some risk but the risk is just due diligence which as I mentioned Adam Winslow would have sounded or blown his whistle and won’t last week said he thought the st offer was opportunistic and undervalue DLG and wanted the shareholders to back him for the turn around if there was hunky lanky in the books . Now that the offer is agreed and accepted by both parties - is just the due diligence that all takeover needed to undertake - to prove to the bankers and cover the AV CEO and the Board - imo

This period is due diligence and should be ok as DLG CEO was in his job since Feb/Mar therefore if anything fishy - he would have blown the whistle quick and loud , plus there are internal and external auditors combed through the books when H1 result was reported . This is just a routine formality of the takeover process - imo .

It's not an "offer price" though, instead "possible offer", quite why the takeover regulators have allowed such shite to permeate concluded talks than mere approaches? Hence DLG at 253p with the market apparently signalling a weight towards selling early on. Been a stream of these "possible offers" in UK plc this year, is the first to my eyes where boards agree but it's still only "possible". Takeover arbitrage is strictly between market price and firmly declared offer terms; so if it's not a firm offer then DLG's market pricing - at a 6% or so discount - can be said efficient. Regulators should not have allowed such ambiguity to get a grip, which is in the interests of offerors than shareholders. Firm agreed offers have always been subject to due diligence hence that doesn't justify "possible".

DLG small shareholders want the takeover done asap as SP for the last two days have fallen back and are very anxious and can’t stand anymore this hair pulling agony and can get heart attack , however major shareholders are not so keen unless AV offer is increased by at least another 20p as they can wait for the new CEO turnaround plan. Major shareholders are usually big institutions and pension funds and they invest for medium to long term . Good Luck small shareholders , enjoy this rollercoaster ride and hold on tight 😆 😆

Yeah it's a tough call to hang in there or jump ship that's for sure. I have had this one, RMG and AAL this year all have takeover talk and to be honest I don't think I played any of them all that well!! The main thing is has money been made when all is said I done I guess. If the answer is yes then that's ok as no one can ever nail these things with certainty. Good luck all ðŸ‘￾ðŸ￾»

I have never seen the problem with an increased offer based on more Aviva shares. As long as it represents an increase just sell your DLG shares in the market before the takeover happens if you do not want to hold more AV shares.

1st AV offer on 19th, declined 27th, now under the takeover code they have to firm up, come back higher or walk away before 25th December.. Under the code 2.2(a), (when an announcement is required) when a firm intention to make an offer is notified to the board of the offeree company by or on behalf of an offeror, irrespective of the attitude of the board to the offer.. So AV will report before DLG do on/if they go with a round 2 bid raise (or not), there are sub clauses to 2.2 which trigger a DLG obligation to also report, but I was looking for who has to declare 1st.. See what the week brings with it .. :o)

I agree. I do not have much faith in the management to turn this around and for the SP to climb in time beyond the takeover offer. For me, a second offer at 265p will see me sell all my shares at whatever the SP adjusts to.

This takeover battle s boiled down to the major shareholders of DLG as simple as that . If DLG major shareholders believed what DLG CEO said this weekend and willing to wait for 3 to 4 years for the turnaround. Therefore in my view , Aviva definitely needs to sweeten this offer in the coming days.

hTTps://www.google.com/amp/s/amp.theguardian.com/business/2024/dec/01/direct-line-takeover-target-aviva-bid-adam-winslow-ceo

I don’t see you point that if the 4 top personnel originally moved from Aviva and joined DLG , a takeover by Aviva , these 4 personnel would find themselves out of a job very soon as Aviva clearly indicated by combining , it can saved millions. No wonder the CEO and CFO fiercely resisted the takeover . In the eyes of Aviva , these 4 that left to join DLG are ‘traitors ‘.

Wba1 - don’t get carried away , the rug will soon be pull underneath from you and leave investors hanging in mid air .This sudden 70% increase of DLG Share Price before the announcement of Aviva takeover offer from £1.587 to £2.32 to me is based on the on one word ‘HOPE ‘ that Aviva would increase the offer . Already at the current price of £2.32 ( Ie all cash ) is better than the part cash and part share by Aviva offer in my view .

Also repeated on Reuters this evening.. UK's Aviva contacts Direct Line investors as hostile takeover looms, FT reports By Reuters November 28, 2024 6:56 PM GMT Updated 8 min ago Nov 28 (Reuters) - Insurance company Aviva (AV.L), has contacted investors in bid target Direct Line (DLGD.L), a move that could pave the way for a hostile takeover of the smaller rival, the Financial Times reported on Thursday..." Https://www.reuters.com/markets/deals/uks-aviva-contacts-direct-line-investors-hostile-takeover-looms-ft-reports-2024-11-28/ and this one's not behind a paywall.

As you know not normal practice for me but don't see any point hanging on for more & prefer Aviva anyway so with them dropping today its given me the opportunity to add to my existing shares & TBF I think its very underhand not to tell your share holders that you've had a takeover offer, I am sure someone at dlg has done well out of it.

"...in the UK, the extra value that a buyer needs to offer to win backing for a takeover has been rising. In local parlance, 40 is the new 30 — indicating that the benchmark premium required to even merit attention has moved up by some 10 percentage points simply to reflect the FTSE’s perceived undervaluation..." Https://www.ft.com/content/5bf1a906-9b94-4af1-ac61-1283c4932cd8

One thing for sure DLG Board cannot be trusted . This is the second time that the DLG had an approach of offer but the Board only came out after the news broke and not before . The RNS came out after the Board members bought shares at the cheap . DLG had an offer of takeover on the 19th Nov but only after over a week , it came out only yesterday that the Board rejected the offer . This clearly is dishonest and not truthful to its shareholders and clearly is not on. DLG Board cannot be trusted at all.

SteI don’t mean Aviva shareholders would be silly to reject the takeover. I mean the Aviva board would look silly. Aviva clearly want to buy DLG so surely they must have a pretty good idea their major shareholders would back it.

City1911. - Why? Major shareholders reject the takeover of DLG is silly . - can you give the reason(s) ? Like to see you view !!!

Aviva would look a bit silly if their major shareholders reject the takeover.

The DLG board rejecting the offer is standard playbook, as is the initial offer made by a potential suitor. I expect AV. to come back with a higher offer, and DLG would be foolish to reject it. The new CEO will make a bundle out of a takeover as his options will kick in. And it does no harm to his CV if he lands a deal in the interests of shareholders.

Quite a small drop for AV considering the size of the potential takeover. I made the mistake of not getting out for a small loss on the takeover potential previously. Waiting again, as I think t/o will be higher, but a good chance I could miss my chance to get out. If in profiit fairly sure I would be sellig some. There is no logic to that but what we do. Good luck holders, it makes it interesting.

I think a very significant difference this time versus Ageas is Adam Winslow is ex Aviva. I don't believe the bid or its figure came as a surprise to him any more than I believe Aviva were surprised by the immediate and firm rebuttal. Winslow & DLG look strong today and - it can easily be argued - are actively ensuring they do their best for existing shareholders. Their reputations will be enhanced further when a friendly takeover at a materially higher figure than 250 is formally agreed, the terms of which will already have been set.

AV now have until 5pm 25.12.2024 to confirm, raise or step back from the bid under the takeover code..But given market hours I think that results in 12 noon XME..

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)

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

Takeover coming here.

I am still buying. Now have 35k at a 171 average. The binary future of recovery or takeover remains. Jefferies seem to confuse the trend for private motor with the opportunity for DLG. I agree that rates have peaked. This will still produce a further improvement in reported profit for 2025 (in March 2026 results) but the opportunity for growth lies as much outside private motor (and even retail business) as within the traditional motor sector. I hope DLG have the sense to target growth on commercial lines but, if not, I look forward to the bid battle.

The thought of a takeover is keeping me invested but the numbers put out the other day and the experience of the 'New Marketing Ploy' in the downright refusal to even tender a quote for home insurance renewal speaks volumes. Hope Av.va fulfils its promise today or I can see us following the path taken by Abdn in the last few months and revisiting the 130's again. At the moment with the loss of customers in the motoring side this does not fill me with confidence. House (2) and car currently insured with Aviva .Don't know if I'll ever comeback. Good luck

x

Nelly assume you aren't long here - and I don't disagree at all, I posted in both July and August that this was a poorly run organisation with idiot management who turned down a gift-horse takeover opportunity - and will crush the poor share holders as a consequence. So yes, it is obvious :-)

And as I predicted all the takeover 'premium' is gone - and you poor guys think it's going to recover when idiots are in charge. I am so sorry.

Yeah this one falls into the pain trade category that's for sure!! Why I didn't jump on the takeover news when I had the chance frustrates me still but hey that's the game we all play when it comes to individual stock picking. Hopefully DLG on Monday gives us something positive to "remember" Good luck all ðŸ‘￾ðŸ￾»

Only reason to invest here is in the hope of a takeover. Judging from my experience and the downright shortsightedness in refusing to even offer a quite for renewal of a policy held for over 10 years. All this demonstrates to me is a cavalier approach to customers forcing them to go elsewhere. The dividend itself after all the hype was and is paltry Staying well clear. Aviva have got my business and I in turn hold their shares with a proper dividend. Rant over Good luck

Market not impressed, rejecting the takeover was a mind numbing egotistically fuelled screw up by the board. Never mind.

The issue with the error is mot any materiality in terms of the company value or performance but what it says about the strength of management. To answer fenners point, this is down to both actuaries and accountants but since there is no actuary at top level the buck stops with the accountants - and there are more of those on the board than I can count. The CFO is responsible and if he failed to acquire adequate actuarial resource that is his fault. I continue to hold and topped up when it dipped below 180 (since my existing holding was in the low 180s bought after the takeover was called off). Not even this bunch of clowns can prevent results improving substantially this year and such errors just increase the risk of a predator (good for us). As others have said, my only concern is growth. At least Adam Winslow being a salesman should enable him to manage that, even if financial rigour passes him by.

another example of a bunch of idiots turning down a takeover and this will slide back down the toilet.