RSA Insurance Says Not In Merger Talks With Zurich

(RTTNews) - Insurance group RSA Insurance Group plc (RSA.L, RSAIF, RSAID, RSNAY) on Monday responded to an announcement by Zurich Insurance Group AG (ZURVY) that it is evaluating a potential offer for RSA.

In a statement, RSA said it has not held talks with or received a proposal from Zurich, and advised its shareholders to take no action.

RSA shares surged 18 percent after Swiss insurance company Zurich said it is mulling an offer for RSA.

Citing UK takeover rules, RSA noted that Zurich is required, by not later than August 25, to either announce a firm intention to make an offer for RSA or to announce that it does not intend to make an offer.

RSA said it looks forward to updating the market on trading performance and strategic progress at the interim results announcement on August 6.

Earlier today, the Wall Street Journal reported that Zurich may try to buy UK-based RSA in a deal that could be valued at more than $8 billion. Zurich's announcement comes about two years after RSA was enmeshed in an accounting scandal at its Ireland unit .

RSA has been revamping itself after its appointment of Stephen Hester as CEO last year. Under Hester, former CEO of Royal Bank of Scotland Group plc, RSA has sold business lines and raised fresh capital.

RSA.L closed Tuesday at 518.50 pounds, up 80.70 pounds or 18.43%, on a volume of 34.2 million shares on the LSE.