Aviva shares surged up to 10% today due to rumours suggesting it might be a takeover target for an overseas buyer.
On Friday, the share price of the company climbed over 10%, reaching 428p, resulting in a valuation of about £11.6bn.
This increase followed reports by market blog Betaville and The Times, indicating that Aviva may be drawing attention from several international competitors keen on acquiring the insurer.
Previously, Aviva was associated with Allianz, the leading insurer in Germany. Meanwhile, Canada’s Intact Financial Corporation and Scandinavian insurer Tryg were believed to be evaluating their positions, with at least one mulling over an offer of £6 per share, as per The Times.
Aviva chose not to respond to these speculations.
An insider from the City mentioned that such reports might have “dubious sources”. They further highlighted that, as per the takeover code, Aviva would need to release a statement if they received any such offers.
The same source commented, “The present economic backdrop doesn’t seem conducive for such endeavours.”
By Friday afternoon, the share prices had adjusted to a 6% increase, retracting some of the earlier spikes.
Under the leadership of Amanda Blanc, who became Aviva’s CEO in 2020, the company has streamlined operations through multiple divestitures.
In the past three years, Ms. Blanc has secured approximately £8bn from overseas sales, focusing Aviva’s endeavours on the UK, Ireland, and Canada.
Just last month, Aviva acquired AIG Life UK for a sum of £460m, representing the largest purchase by the FTSE 100 insurer during Ms. Blanc’s leadership.
