Direct Line rejects £3.3 billion bid from Aviva

Direct Line Group has rejected a £3.3 billion ($4.2 billion) acquisition proposal from Aviva. Direct Line shares soared 41%  after it rejected the offer.

Earlier this year, Direct Line’s board turned down multiple acquisition attempts by Belgian insurer Ageas, with the last one valuing the UK-based company at £3.17 billion.

In a statement, Direct Line confirmed it received the unsolicited and conditional offer on November 19 from Aviva, while adding that it undervalued the company’s standalone potential.

Earlier this month, Direct Line outlined a cost-cutting plan to create a leaner and more efficient operating model, which will result in a reduction of around 550 roles – 6% of the workforce.