Aviva backs away from hostile Prudential bid

Norwich Union owner Aviva said today it was unwilling to table a hostile bid for Prudential despite having a £17bn (€24.5bn) proposal knocked back by its rival’s board.

Shares in the Pru rocketed by more than 12% to stand above the 708p level that Aviva was willing to pay in an all-share deal as investors pinned their hopes on a higher bid by its UK rival or the entry of European competitors such as Axa into the fray.