Aviva told to deliver or see itself split up

first_imgMonday 16 August 2010 8:39 pm whatsapp Tags: NULL INVESTORS piled pressure on Aviva to come up with a credible alternative to being broken up yesterday as the insurer formally knocked back rival RSA’s “unacceptable” £5bn approach for its general insurance business.Shareholders are disgruntled at Aviva’s decision not to consult them before rejecting the offer for the group’s property and casualty operations in the UK, Ireland and Canada. RSA’s interest has stirred up longstanding frustration at Aviva’s inability to close the gap between its embedded value and share price.Euan Stirling at Standard Life Investments (SLI), which owns shares in both FTSE 100 firms, broke cover to say: “If RSA were to come back with a more serious bid, Aviva would have to take that more seriously and who knows what happens beyond that. Maybe the cat’s out of the bag then.”Another institutional investor told City A.M.: “The main result of the bid is to raise questions over whether Aviva could be split up and become an acquisition target.”Investors, led by SLI and Royal London Asset Management, are demanding action to stimulate Aviva’s value if the board continues to refuse talks with RSA.Their calls came as RSA issued an aggressive statement accusing Aviva’s management of squeezing a poor return on equity from the business since chief executive Andrew Moss took over in 2006. RSA said its offer was “fair” at 9.8 times 2010 earnings.Aviva retorted by arguing RSA was trying to buy its general insurance arm at a low point in the cycle. RSA’s offer was “unacceptable and not in the best interests of shareholders”. Shares in Aviva ended 2.5 per cent down at 377.9p. Shares in RSA closed down 2.3 per cent at 124.5p. KCS-content by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailUndoNoteabley25 Funny Notes Written By StrangersNoteableyUndoZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldUndoBetterBe20 Stunning Female AthletesBetterBeUndoautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comUndoAtlantic MirrorA Kilimanjaro Discovery Has Proved This About The BibleAtlantic MirrorUndoTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoElite HeraldKate Middleton Dropped An Unexpected Baby BombshellElite HeraldUndoTrading BlvdThis Picture of Prince Harry & Father at The Same Age Will Shock YouTrading BlvdUndocenter_img Aviva told to deliver or see itself split up Share More From Our Partners Killer drone ‘hunted down a human target’ without being told tonypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgMark Eaton, former NBA All-Star, dead at 64nypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comWhy people are finding dryer sheets in their mailboxesnypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.com‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comConnecticut man dies after crashing Harley into live bearnypost.com whatsapp Show Comments ▼last_img