Insurance giant QBE has extended the deadline for its $8 billion takeover bid for Insurance Australia Group (IAG) for a second time despite the rival firm twice refusing the original offer.
QBE last week notified shareholders it planned to extend its proposal until May 19.
“The proposal has been extended to allow stakeholders more time to consider the impact of IAG’s profit downgrade announced last week and the value of QBE shares,” QBE chief executive Frank O’Halloran said.
“QBE remains interested in seeing through a friendly merger with the recommendation of IAG’s board.”
In late April, IAG informed its shareholders it had rejected QBE’s offer.
A week later IAG informed them it had not changed its mind over the proposal despite the extension of the first new deadline to May 5.
Commenting on the second deadline extension, an IAG spokesperson said the company intended to stand firm on its original rejection of the deal.
“Nothing has changed since our last statement. As we made clear, IAG views the takeover proposal as incomplete and inadequate,” the spokesperson told InvestorDaily.
“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.”
As well as focusing on a possible IAG deal, QBE has made a number of acquisitions.
QBE has made five separate transactions, which are anticipated to produce additional net written premium of close to $200 million and incremental insurance profit before tax of around $70 million in 2009.
Due to confidentiality agreements the exact details regarding the names and nature of the acquisitions could not be disclosed.
