Analysts point to 265p per share to sweeten Aviva-DLG deal
Experts from Peel Hunt have labelled Aviva’s 250p per share approach for Direct Line as a “reasonable offer” adding there is “scope to sweeten the bid to 260-265p”.
The news of Aviva’s £3.3bn offer broke yesterday with DLG rebuffing the approach as “highly opportunistic” and “substantially” undervaluing the company.
Ageas made two bids for DLG earlier this year setting the price in the region of £3.1bn, both of which were turned down.
While we cannot rule out a bidding war for DLG we think it unlikely but a higher offer emerging from Aviva remains a distinct possibility.
The latest cash and shares proposal from Aviva represented a premium of around 60% for DLG
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