Zurich prepares GBP 5.5bn takeover offer for RSA Insurance
Zurich Insurance of Switzerland is rumoured to be preparing a takeover offer for its UK-based counterpart RSA Insurance, the Financial Times reported. The offer is believed to value London-listed RSA at approximately GBP 5.5bn (USD 8.6bn), the report said.
A source familiar with the British insurer said no offer has been received, the item reported.
Zurich announced at the end of last year that it has more than USD 3bn (GBP 1.9bn) of available cash for M&A spending, the report said. It added that analysts noted the Swiss group recently outlined a target capital structure which could enable the business to issue subordinated debt totalling approximately USD 3bn during the imminent years to come.
RSA has a GBP 4.6bn market cap. Speculation that the company might be sold or broken up has been growing since activist fund Cevian Capital accumulated an almost 10% stake last year, the report said.
Source Financial Times