Aviva Plc Volatile Amid Merger Reports

Aviva Plc (ADR) AV shares were volatile Friday amid merger reports.

SkyNews reported that “Aviva has agreed to buy Friends Life Group in a £5bn-plus deal that will create a pensions provider with 16 million UK customers.”

According to the report “the takeover would be implemented as an all-share combination with Friends Life, which has a market capitalisation of around £4.85bn.

Bloomberg reported that Aviva would acquire all the shares of Friends Life for 0.74 Aviva shares for each Friends Life share and calculated the value of the offer at ~398.9 pence per Friends Life share which would be a premium of 15 percent on Friends Life’s closing share price on November 21


Friends Life holders would own approximately 26 percent of the combined companies, according to Bloomberg.

Aviva Plc (ADR) recently traded at $16.30, down 1.98 percent.