Insurance Australia Group (IAG) has knocked back a takeover bid by QBE for the second time in a week despite the rival firm extending its original takeover proposal.
In a statement to the Australian Securities Exchange, IAG informed its shareholders that it has not changed its mind over the proposal despite a new deadline for the deal being set for Monday 5 May.
Last week the IAG board considered the QBE proposal was incomplete and concluded that certain terms of the deal, in particular the price, were inadequate.
“The QBE proposal remains unchanged as does the view of the IAG board. The board does not intend to respond any further to this takeover proposal and, as a result, the revised extension date is of no significance,” IAG chairman James Strong said.
“The board and management are addressing the short term challenges facing the company such that it will be well positioned to benefit from the anticipated improvement in the insurance cycle.
“The IAG board will ensure it continues to act in the best interests of IAG’s shareholders and will keep shareholders informed of any further developments.”
QBE advised IAG of its proposal to merge with IAG through a scheme of arrangement on April 15.
Last week IAG restructured its Australian operating division.
Under the restructure the firm’s CGU arm and business partnerships will be merged together to create an intermediated insurance division.
Services previously operating under the personal insurance division will now operate under the direct insurance division. These services include NRMA Insurance, SGIO, SGIC and RACV businesses.
