Zurich makes £5.6bn offer for rival RSA
RSA Insurance has revealed that it has accepted a provisional £5.6bn takeover proposal from Zurich.
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Zurich has proposed a price of 550p per share, which the RSA board said it would recommend at this price to its shareholders.
RSA said in a statement:
“The board has indicated to Zurich that it would be willing to recommend an offer at the level of the possible offer to RSA shareholders subject to the satisfactory resolution of the other terms of the offer. Accordingly, the board is in discussions with Zurich in relation to these terms.”
Under the terms of the proposal, RSA ordinary shareholders retain the right to receive the 3.5 pence interim dividend announced by RSA on 6 August 2015.
Zurich first revealed its intentions to make a bid last month, with talks becoming mroe serious as the deadline approached for Zurich to make a firm offer at 5pm today.
RSA has agreed to extend the deadline for Zurich to make a firm offer to 22nd September.
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