Delta Lloyd Said Planning to Reject Approach From NN Group

Dutch insurer Delta Lloyd NV is planning to reject an unsolicited takeover approach from larger rival NN Group NV, people with knowledge of the matter said.

Delta Lloyd could announce the rejection of the $2.4 billion euro ($2.7 billion) cash offer as soon as Friday, said the people, who asked not to be named because the information is private. No final decision has been made and plans could still change, they said.

Delta Lloyd, which has often been cited as a potential target for NN, said this week it had received a “conditional, unsolicited” offer and its board members were studying it.

The firm returned to profit in the first half after cutting costs and completing a 650 million euro rights offer to help comply with stricter requirements for insurers introduced by the European Union in January.

Representatives of NN and Delta Lloyd declined to comment.

In a statement Wednesday, NN said it offered 5.30 euros a share for the Amsterdam-based insurer, and that Delta Lloyd hadn’t responded to its attempts to discuss its offer and negotiate a recommended transaction. NN planned to finance a purchase using existing resources and external debt. It also suspended part of its 500 million euro buyback.

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