On Friday evening, Ageas announced that it will ultimately not make a bid for Direct Line.
After two rejected bids, the Belgian insurance group Ageas is withdrawing its bid for the British Direct Line.
Ageas, the insurance group above Belgian market leader AG Insurance, has abandoned its plans to acquire British insurer Direct Line.
In a press release, the Belgian listed group announced that it would refrain from making a concrete new offer for the British specialist in car, home and pet insurance.
In recent weeks, Ageas has attempted the largest takeover attempt in its history. It made a billion-dollar bid for Direct Line. Ageas wanted to go far to acquire the UK's second largest car insurer. In a first attempt at the end of February, the Belgian group wanted to put up 3.6 billion euros in cash and new shares to be issued to take over Direct Line. With this deal, Direct Line shareholders would immediately become more than a fifth shareholder in Ageas.
But the British refused because they believed Ageas undervalued Direct Line's prospects. Last week, Ageas tried again with a slightly higher offer of 3.7 billion euros. But again the Belgian group's offer was rejected.
Under British takeover law, Ageas had in principle until next Wednesday to launch a final offer for Direct Line. But that offer will not be made, Ageas said.
