(Bloomberg) -- RSA Insurance Group Plc rose in London tradingafter Switzerland’s Zurich Insurance Group AG proposed to buy thecompany for about 5.6 billion pounds ($8.8 billion).
The shares increased 5.1 percent to 520 pence at 9:11 a.m.,short of Zurich’s conditional offer of 550 pence a share. RSA willrelay the bid to shareholders provided satisfactory terms are met,including due diligence, it said in a statement from London onTuesday. U.K. regulators have given Zurich until Sept. 22 to make afirm offer.
The decision ends a month of speculation about whether ZurichInsurance Chief Executive Officer Martin Senn would bid for thecompany and comes on the day of a deadline to submit an offer. Thepossible takeover, which would be the biggest in Europe this year,has spurred speculation that buyouts in the European insuranceindustry, which have lagged behind those in the U.S., are about togain momentum.
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