Aviva appeals to Prudential shareholders over takeover
Prudential has refused to enter talks with Aviva, saying a marriage of the two companies was not in the best interests of shareholders.india Updated: Mar 20, 2006 18:21 IST
British insurance group Aviva PLC on Monday urged rival Prudential PLC to accept its 17 billion pound (US$30 billion, euro25 billion) takeover offer.
Prudential has refused to enter talks with Aviva, saying a marriage of the two companies was not in the best interests of shareholders.
But Aviva chief executive Richard Harvey said there was "a compelling strategic, financial and operational logic" behind a merger, which would create the world's fifth-largest insurer by market value.
Aviva's offer values Prudential at 708 pence (US$12.44, euro10.21) a share -- 10 per cent higher than its closing price Thursday, when the offer was made. Aviva said it would only press ahead with the deal if it was recommended by the Prudential board.
"This is a real opportunity to create a leading player in the global savings, investments and insurance market," Harvey said. Prudential shares traded 8.6 percent higher Monday at 730 pence (US$12.83, euro10.50). Aviva shares were 2.8 percent higher at 850.5 pence (US$14.95, euro12.27).