QBE has formally withdrawn its bid for Insurance Australia Group (IAG), vowing to concentrate on other acquisitions.
QBE chief executive Frank O’Halloran said his company understood that its final proposal on price had fallen well short of IAG’s expectations despite representing a very attractive premium of 22 per cent to the closing price of IAG shares of $3.79 on April 9, 2008, prior to opening discussions.
He said that with the significant synergy and diversification benefits of the merged group, IAG’s shareholders would have benefited from substantial earnings per share accretion in the first year as well as from QBE’s higher profitability and strong track record.
O’Halloran said QBE would continue to focus on the pipeline of acquisitions that has been accumulating in recent months, including a range of opportunities in the Americas, Europe, Asia and Australia.
