QBE Insurance extends takeover proposal for IAG

SYDNEY, April 22 (Reuters) - QBE Insurance Group Ltd (QBE.AX: Quote, Profile, Research, Stock Buzz), Australia's top insurer by premium income, said on Tuesday it has extended a takeover offer for smaller rival Insurance Australia Group Ltd (IAG.AX: Quote, Profile, Research, Stock Buzz) (IAG) to May 5, after the initial offer period expired on Monday.

Last week IAG rejected a A$7.7 billion ($7.3 billion) stock and cash bid from QBE, saying the offer was totally inadequate.

QBE had offered 0.142 of its own shares and A$0.70 in cash for every IAG share. QBE did not change the terms of proposed offer but said it was willing to discuss the proposal with IAG. ($1=A$1.06) (Reporting by Denny Thomas;) ((denny.thomas@reuters.com; +61 2 9373 1812; Reuters Messaging: denny.thomas.reuters.com@reuters.net))