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Chrystia Freeland

Breakingviews: Excessive Aviva scepticism

Tuesday, December 02, 2014 - 03:45

Markets are cool over Aviva’s £5.6 bln takeover of Friends Life. The scepticism over the deal is excessive says Breakingviews.

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The market saying wait you down on this out of being a friend's time processes breaking news Chris Hughes is in the store for them in joins via and the students amazing actually Chris when we look at that. Beat the a copy this morning provost top credits going at. People are still playing back analysts clip rights issue in disguise over net Vernon via widgets are you into that anywhere about a week so. You know. Yeah the mock us is it's it's warming up to this transaction. And the loss here it's. But still what's striking is that the the combination. Is actually worth less. Then before this potential to became public say. Even though there's been a poster today Smith's behalf some clarity. The that the that the funnel tons. The proposed savings. The market Phil thing breathe and really. Behind this which is all because actually. The finishing number it's pretty credible company is saying. There isn't going to be known mega come out all right he. Million to nine man they're the savings come largely from from from from from promise with a from you know from paying from jones' last. And not actually be pretty pals kind of limit the execution risks around say. There are some issues could be around Waltz. Aviv is paying for friends from from this massive share price run up. And ahead of the deal say it's hardly go to Barca but even that if you factor in the potential arbitration from the from the finish is an if not its online and to review before him down. He gave me was off again today. That I thought yeah they well off the apron and then that's when you know when that when that investors were able to digest a bit more. Precisely reticence is coming Foreman and here management. Speak consult transaction. Suddenly those say ten and I'm now. This is appliance of let's say even now with this slide around it. It's not quite he's come as the world you know more than they were a few skirts that there's still quite a big sell told to be done by management. So what does this guy now I mean we'd sort of this continues its share price may be continues going up a little bit. At recouping some of the losses from before I'm do we Seattle times I was in the Zacks. Well firstly I do think we gonna see accounts of its there was you there's there's been enough time for that probably it's a com. Long. And like I said Aviv's already paying a proof he. Full price for friends say the Charleston going to be Boston this one not. Pretty slim. Whether it's gonna kind of trigger meg consolation in the in the UK. I'm not so sure this is the through for a bit of a one off. It's really an opportunistic. Rabbi of fever for a company which is gonna really help that but it's cash flow. Atticus instances on the fly at such an extent as the rights issue and disguised as a very synergistic one and they clearly. They they they they'd be Kia a suit in a rights issue issue says. As you do in a rights issue differences still think get some potential synergy benefits they. I'd be a good thing that you can make that same case for other potential tie ups and you can insurance and authorities are still complicate things to do with the all the small scale and all the bill on the social. Okay cars and things that Chris here's britney's week Chris FISA court. On the breaking news website that's it from me I'm axle problem sources.

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Breakingviews: Excessive Aviva scepticism

Tuesday, December 02, 2014 - 03:45