RSA share price leaps 5.3 per cent as Zurich Insurance Group tables revised £5.6bn offer ahead of takeover deadline

RSA's share price jumped 5.3 per cent at the open after Zurich Insurance Group revealed a revised offer for the British rival, sneaking in ahead of today's takeover panel deadline. 

 

The group is now offering 550p per share in cash for the entire issued ordinary share capital of the insurance firm. That values the firm at around £5.6bn, up from the previous bid which was understood to be around £5.5bn.

 

On top of that RSA shareholders will receive an interim dividend of 3.5p per share, which was previously announced by RSA on 6 August.  

 

RSA's share price closed at 495p yesterday, having weathered Black Monday relatively better than its other FTSE counterparts. 

 

Both firms said RSA's board had “indicated it would be willing to recommend an offer at the level of the possible offer to its shareholders”, subject to terms. 

 

The deadline to make a decision was due at 5pm today, but in light of the new offer RSA has been given an extension 5pm on 22 September.