Direct Line Rejects £3.3 Billion Takeover Bid from Aviva

The insurer's board deems the offer undervalued, while speculation grows over a potential improved bid or rival suitors.

Aviva proposed a £3.3 billion cash-and-shares bid to acquire Direct Line, valuing the company at 250p per share, a 60% premium on its pre-bid share price.
Direct Line's board rejected the offer, calling it 'highly opportunistic' and asserting confidence in its standalone recovery strategy under new leadership.
Speculation has arisen over a potential higher bid from Aviva or renewed interest from Belgian insurer Ageas, which made previous unsuccessful offers earlier this year.
Analysts suggest Aviva may need to increase its offer to 260p-265p per share to gain board and shareholder approval, with some predicting significant cost and capital synergies from a merger.
Concerns have been raised about potential job cuts and competition impacts, as the combined entity would dominate key segments of the UK insurance market.