Aviva submits £3.6bn bid for Direct Line takeover

275p per share valuation

Cameron Roberts
clock • 1 min read

Insurer, Aviva, has submitted a takeover bid of £3.6 billion to acquire Direct Line. The bid entails Aviva paying 275p per share.

The deal would see Aviva pay 129.7p per share in cash, with the remaining valuation to be made up of Aviva shares. It also includes a 5p dividend payment, subject to board approval. Previously Aviva had tabled a bid worth 239p per share, which was rejected by the Direct Line board. Aviva and Direct Line said in a joint statement in response to the accepted offer: "In addition to the attractive headline value per share, the combination would provide the opportunity to deliver significant synergies, creating substantial additional value for both sets of shareholders." The bid represe...

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