RSA rebuts Aviva’s dismissal of its buyout offer

Claiming that its £5 billion buyout offer of Aviva’s general insurance division, personal and business insurance provider RSA currently stated that not only did it make good strategic sense to sell to them, the price they offered was fair and reflected the value of Aviva’s business.

In a recent statement concerning the summary dismissal of their offer to purchase a large portion of Aviva’s commercial insurance business, RSA declared that it will remain open to any further discussion in regards to the Aviva purchase, despite the latter’s reluctance to sell.

The £5 billion in cash that RSA offered for Aviva is representative of the fair value of Aviva’s business holdings, the company continued to say.  Additionally it reiterated the fact that shareholders of both Aviva and RSA would benefit from the proposed buyout and would be in the bests interests for all parties involved.

Aviva made headlines earlier in the week when it summarily rejected the buyout offer from RSA, claiming that the £5 billion was an undervaluation of its general insurance division.

Aviva was also quick to assert that the business model for the company, built upon a composite of the general insurance, life insurance, and business liability insurance is the proper strategy for meeting the coverage needs of its many customers.

Despite these assertions, however, many Aviva shareholders were highly critical of the executive decision to summarily dismiss RSA’s offer, going so far as to call the practice “lacklustre” in its heavy-handed approach.  Aviva’s shareholders were neither informed nor consulted in regards to the possibility of the purchase by RSA, and rumours of new demands by shareholders to conduct strategic reviews to determine the viability of a plan to break up Aviva into separate business entities.

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