IAG rejects QBE’s final offer

by David Masters

Story link: IAG rejects QBE’s final offer

Australian-based insurance group IAG has formally rejected rival QBE’s latest takeover approach, leading to QBE withdrawing interest in the company.

The decision was made in a meeting between the boards of the two companies. Following the meeting, IAG accused QBE of attempting to take advantage of a short-term weakness in the company’s share price.

They added that the AUS$8.7 billion (US$8.4 billion) offer did not ‘adequately reflect the underlying value’ of the company.

The offer was QBE’s third in five weeks, and follows months of speculation about a takeover attempt.

QBE has now withdrawn the merger proposal. This led to an 8% slump in IAG’s share price.