QBE has raised the offer on purchase of Insurance Australia Group for 8,3 billion dollars
19 May 2008The largest national insurer on insurance gathering QBE Insurance Group Ltd. has raised the offer on purchase of the competitor - insurance company Insurance Australia Group Ltd. (IAG) - for 8,7 billion Australian dollars (8,3 billion US dollar). Now QBE offers 0,145 of their shares and 0,9 of Australian dollars (0,86 US dollars) cash for each IAG’s shares.
In the middle of April, 2008, insurance company Australia Group Ltd. (IAG) has refused the offer on its purchase for 7,4 billion Australian dollars (6,8 billion US dollar), put forward QBE Insurance Group Ltd. As IAG representatives have declared, they “have considered the offer and some terms, in particular, the price, and have come to conclusion, that, they are unacceptable “.
Earlier executive director QBE has openly declared the interest in purchase of IAG and has added, that merge would make the incorporated company one of 15 largest insurers in the world.
IAG chapter James Strong has declared that in spite of the fact that QBE representatives name the transaction as “merge” in reply to this offer, it is a question of absorption, considering the offered conditions. He has added that he considers the offered sum, which exceeds market cost of shares of the company only on 1 %, unacceptable.
QBE Insurance Group Ltd. - Australian international insurance and reinsurance company with local base and offices in more than 40 countries of the world. QBE’s operational network covers Australia, Asian-Pacific region, America and the Europe.
Insurance Australia Group Ltd. specializes on real estate and cars’ insurance. Company’s annual turnover makes nearby 7 billion dollars, the general staff of the company exceeds 16 thousand employees.
