Direct Line’s chief executive Adam Winslow has urged shareholders to remain patient as the company navigates an unsolicited takeover bid from insurance firm Aviva, the Guardian reported.
Adam Winslow, who joined Direct Line from Aviva in March, has highlighted the brand’s presence and emphasised that the new management team is making significant improvements.
Go deeper with GlobalData
Direct Line was better off pushing ahead on its own with “a strong stand-alone story and clear path to create shareholder value”, Winslow told the Sunday Times.
The bid, valued at £3.3bn, was deemed insufficient by Direct Line, which is known for its motor insurance services.
Direct Line recently dismissed a non-binding proposal from Aviva, which was composed of cash and Aviva shares at 250p per share.
According to Direct Line, the offer was labelled as “highly opportunistic and substantially undervalued the company”.
Direct Line’s chair, Danuta Gray, met with Aviva chair George Culmer last week to discuss the inadequacy of the proposal.
The takeover attempt follows a challenging period for Direct Line. The company, which experienced leadership changes and financial setbacks, has been working towards a recovery, the Financial Times reported.
Direct Line founder Sir Peter Wood has suggested that Aviva would need to increase its offer to reflect the true value of the company.
Direct Line, which also owns brands such as Churchill, Green Flag and Darwin, previously rejected two proposals from Belgian insurer Ageas earlier this year.
According to the takeover regulations, Aviva has until 5pm on 25 December 2024 to declare its intentions.
The company must either announce a firm intention to make an offer in line with the rules or state that it will not pursue the takeover, in which case the announcement will be subject to Rule 2.8 of the Code.
Extensions to this deadline can be granted with the approval of the takeover panel.
