Zurich Insurance proposes $8.8B takeover of RSA

Zurich Insurance made a friendly 5.6 billion pound ($8.8 billion) takeover proposal for British rival RSA yesterday, paving the way for one of Europe's biggest insurance deals. Zurich said a month ago it was weighing a bid but left it to the last day under British takeover rules to unveil a cash offer of 550 pence per share, roughly in the middle of the price range expected by investors in Zurich and RSA. RSA said it planned to recommend the proposal to its board and gave Zurich another four weeks to come up with a firm takeover offer, though the Swiss insurance company reserved the right to ultimately bid below 550 pence per share.