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Journalism of Courage
British insurer Aviva Plc has rejected a five billion pound takeover offer for its general insurance business from rival RSA Insurance Group Plc,a media report said.
Attributing to people familiar with the matter,The Wall Street Journal stated in a report that Aviva has spurned the offer from RSA Insurance Group Plc for its general insurance operations “in a deal that would be worth at least 5 billion pound.”
Such a deal,however,could also pose hurdles for RSA,which focuses on general insurance and has staged a major turnaround of its business in recent years,WSJ said.
“The two companies aren’t currently in any further negotiations,” the WSJ said citing people familiar with the matter.
RSA,whose market value is only about 4.5 billion pound,would have to raise a significant amount of fresh capital from the market to fund the deal and this could hurt the shareholders,the report said.
