Direct Line rejects US$4.2bil takeover offer

Direct Line’s board rejected the proposal on Nov 26, saying it substantially undervalues the company. — Bloomberg

LONDON: Direct Line Insurance Group Plc rejected a £3.3bil (US$4.2bil) takeover bid from Aviva Plc, rebuffing the second suitor this year.

London-listed Aviva submitted a non-binding proposal valuing Direct Line at about 250 pence per share, it said in a statement Wednesday that confirmed an earlier Bloomberg News report. The price represents a 58% premium to Direct Line’s Wednesday close.