25th Aug 2015 07:02
LONDON (Alliance News) - RSA Insurance Group PLC on Tuesday said it has received a revised takeover offer from Swiss rival Zurich Insurance Group Ltd and said it has indicated a willingness to recommend it, though Zurich said it reserves the right to make a bid below the price at which the new offer has been made.
The bid is for 550.00 pence per share, or GBP5.59 billion in total, and would allow RSA shareholders to get the 3.5 pence per share dividend RSA announced in its interim results earlier this month. RSA shares closed Monday at 495.00p.
RSA said the takeover offer is conditional on due diligence and the board recommending the bid, but the insurer said it has indicated that it would be willing to recommend Zurich's offer subject to satisfaction of all relevant parts of the bid.
As a result of the new offer being made, the takeover deadline for the deal has been extended from Tuesday to September 22.
Zurich also confirmed the offer but said it "reserves the right to make an offer for RSA at any time, with a value less than 550 pence" plus the 3.5 pence per share dividend.
Zurich first confirmed it had was considering a takeover offer for RSA last month and the pair have been in talks since. Shares in RSA have increased 9.5% since the offer was made.
By Sam Unsted; [email protected]; @SamUAtAlliance
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