Aviva reveals £17bn Prudential takeover terms

Norwich Union owner Aviva today put pressure on rival insurer Prudential to come to the negotiating table by revealing the terms of its proposed £17bn (€24.5bn) takeover.

Aviva said it was only prepared to press ahead with the all-share deal to create a £34bn (€49bn) global life and insurance giant if it had the backing of the Prudential board.

But its overtures were rejected by the Pru at the weekend and Aviva today went public with its proposal in a bid to persuade investors to swing behind a marriage.

The indicative offer represents a 10% premium on the Pru’s share price last Thursday when Aviva approached its rival and is equivalent to 708p a share.

It will see Aviva boss Richard Harvey stay as chief executive with estimated cost savings of around £320m (€461.5m) a year.