RSA could accept £5.6bn Zurich takeover bid

UK insurer RSA has informed the London Stock Exchange it has received a revised takeover offer from Swiss-based Zurich Insurance Group and indicated it may accept the bid.

The bid, which is not currently a firm offer, would see shares valued at 550p each, totalling £5.6 billion.

RSA shareholders would still be able to receive the 3.5 pence per share dividend announced by RSA’s interim results earlier this month.

Zurich has reserved the right to make a bid below the price at which the new offer has been made.

RSA added that the takeover offer is conditional on due diligence and the board recommending the bid. The insurer indicated it would be willing to recommend Zurich's offer subject to satisfaction of all relevant parts of the bid, however.

As a result of the new offer the takeover deadline for the deal has been extended to September 22, 2015.

Zurich revealed it was considering making an offer for RSA at the end of July this year.