http://www.bloomberg.com/apps/news?pid=20601081&sid=aBzgaOWo.RpU
IAG Shares Gain in Sydney on QBE Takeover Speculation (Update2)
By Shani Raja
Nov. 18 (Bloomberg) -- Insurance Australia Group Ltd. rose the most in more than a week in Sydney trading on speculation QBE Insurance Group Ltd. is considering a takeover offer.
Shares in IAG, the nation’s largest insurer of cars and houses, climbed 2.3 percent to A$4.01 at the close of trading on the Australian stock exchange. QBE shares rose 2.5 percent to A$23.01.
QBE may be considering a takeover offer, the Australian Financial Review reported in its Street talk column, without citing anyone.
A spokeswoman for Taurus Marketing, QBE’s press agency, declined to comment. Emma Foster, a spokeswoman for IAG, also declined to comment.
In May 2008, QBE withdrew an A$8.7 billion ($8.1 billion) offer for IAG aimed at creating Australia’s biggest insurance company.
“A takeover of IAG would make strategic sense,” said Chris Weston, an institutional dealer at IG Markets in Melbourne. “We know QBE has an aggressive policy of growing the business through acquisitions and we have seen an offer before.”
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Street Talk in the AFR says QBE Insurance (QBE) is running the numbers on Insurance Australia Group (IAG) again. It is believed QBE will make a move for IAG sooner rather than later and this time around offer a reasonable price that the IAG board will seriously consider. The news hasn’t done much for the IAG share price which is only up 5c to 398c. QBE up 39c to 2283c.
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