The industry has reacted with confusion and concern to Aviva's intention to takeover smaller rival Friends Life, with fears a merged insurer will mean worse customer service and less competition.
Clive Cowdery, major shareholder in Friends Life, is undoubtedly very happy about Aviva's plans to buy the insurer, which, if it succeeds, would net him £160m from the £5.6bn takeover deal announced on Friday. Advisers, however, whose clients' money and affiliation are essentially what Aviva is willing to pay a 15% premium to Friends Life's closing price on 21 November for - and a 28% premium to its three-month average share price - are less convinced. "Why oh why would Aviva want to take over Friends when the prevailing wind in the industry is blowing away from acquiring legacy asse...
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