A poor trading performance from Zurich Insurance has prompted the Swiss insurer to withdraw its offer to buy RSA Insurance (RSA). The initial offer was worth around 550p a share, and RSA's share price plummeted by a fifth to 406p on the news.
IC TIP:
Hold
at
406p
Ironically, Zurich confirmed that all due diligence on RSA was in line with its expectations, and without the latest developments, the deal would have proceeded on the terms announced in August.