UK insurer Direct Line has rejected a takeover approach from Belgian insurer Ageas, despite a significant jump in Direct Line's shares following the proposal. Ageas had considered a bid valued at £3.1 billion ($3.9 billion) for Direct Line, which would have offered a 43% premium on Direct Line's share value. The offer, detailed on January 19, comprised 100p in cash plus 25.24047 in stock, equating to 233p per share. However, Direct Line deemed the proposal as 'uncertain, unattractive', and undervaluing the company. Following the news, Direct Line's shares surged, with a notable 21% increase reported. Despite the financial community's interest, some investors, including City investor Redwheel, which owns 1.8% of Direct Line, supported the decision to reject the bid, citing concerns over undervaluation in the London stock market.
Redwheel's Ian Lance: "Direct Line right to reject Ageas bid" (The Times) $DLG $ADM List of key DLG shareholders below; Redwheel owns 1.8% DLG doesn't appear to be top-10 position for Redwheel (UK value fund as sample below) (He didn't like Elliott's bid for Curry's either) https://t.co/GV8Wuh7uLY https://t.co/MFFUCiUtiw
Redwheel's Ian Lance: "Direct Line right to reject Ageas bid" (The Times) $DLG $ADM List of key Direct Line shareholders below (from the FT) DLG doesn't appear to be top-10 position for Redwheel (UK value fund as sample below) (He didn't like Elliott's bid for Curry's either) https://t.co/bobhsOgUhj https://t.co/MFFUCiUtiw
A City investor in Direct Line has backed the insurer’s decision to spurn a £3.1 billion bid from a Belgian rival, warning it is another example of a foreign suitor trying to take advantage of cheap valuations on the London stock market https://t.co/iiS2ghTFxj
Direct Line $DLG +24% after rejecting Ageas offer Ageas $AGS: in "preliminary stages of considering a bid" Possible offer: 100p cash + 25.24047 stock Equivalent to 233p/share Direct Line: received proposal on 19-Jan, sees offer as "uncertain, unattractive" and undervaluing DLG https://t.co/zeQb7SMRgz
Direct Line shares surge amid takeover speculation https://t.co/WYLfQn856s
Direct Line shares surge following Ageas offer to buy out U.K. insurer at 43% premium https://t.co/5KaM5rDQk2
Belgian insurer Ageas considers £3.1bn bid for Direct Line https://t.co/fieWv6GAEn
Shares in @DirectLine jumped 21% on this @business scoop with deal maestro Jan-Henrik Foerster! Some overtures need a bit more convincing before the stars are aligned https://t.co/21FAWUGMGL
UK insurer Direct Line shares jump on Ageas' $3.9 bln buyout proposal https://t.co/LduCTGVDMz https://t.co/Z7wFL2bp62
UK insurer Direct Line rejects a takeover approach from Ageas, sources say https://t.co/oxHJ4zcgcJ