Insurance company Aviva has sweetened its bid for UK’s Direct Line to about 3.4 billion pounds ($4.33 billion), or 261 pence per share, Bloomberg News reported on Thursday, citing people familiar with the matter.
The new offer is about 4% higher than Aviva’s initial offer, according to the Bloomberg report.
The revised proposal comes a week after the home and motor insurer rejected the cash-and-share offer of 250 pence from Aviva, calling the deal “highly opportunistic” and one that “substantially undervalued” the company.
Direct Line and Aviva declined to comment.
Under British takeover rules, Aviva has until Dec. 25 to make a firm offer or walk away.
In March, Direct Line rejected a takeover bid of 239 pence per share from Belgian rival Ageas, which is around 8.4% lower than Aviva’s latest 261 pence per share offer.
