British insurer Aviva rejects 5.0 billion-pound takeover
British insurer Aviva said Monday it had rejected a takeover bid for part of its business from rival RSA worth 5.0 billion pounds (6.0 billion euros, 7.8 billion dollars) in cash.
The proposal was for its general insurance businesses in Britain, Ireland and Canada while the takeover would have been funded by RSA issuing new shares, Aviva said in a statement.
"The board of Aviva considered the proposal carefully in conjunction with its advisers and is convinced that the highest value to shareholders will be delivered by retaining these businesses within the group," it added.
The share prices of both Aviva and RSA fell in reaction to the announcement.
Aviva was down 0.93 percent to 383.8 pence and RSA fell 1.49 percent to 125.5 pence in mid-morning trade on London's benchmark FTSE 100 index, which was also trading lower.
© 2010 AFP