Multibillion Bid for Australian Insurer Extended
Australia's largest property and casualty insurer, QBE Insurance Group Ltd., has extended its A$7.7 billion ($7.3 billion) takeover offer for Insurance Australia Group Ltd. through May 5. Insurance Australia has been a target for takeover by QBE CEO Frank O’Halloran after it posted three straight years of declining profits.
QBE's offer, comprised of cash and stock, was already rejected by Insurance Australia Group as too low; nevertheless, “QBE are going to be very disciplined” in attempting to make the deal happen, said Steven Marsh, who helps manage the equivalent of $632 million, including QBE shares, at Trust Co. in Sydney. “They have a history of acquisitions that have not disappointed shareholders.”
Combining the two insurers would create a company that dominates the local market for insuring everything from cars and real estate to workplace injuries.
Published on April 23, 2008
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