FBD Holdings confirmed this morning that its board has rejected an approach from the Netherlands' biggest insurer Eureko, partly owned by unlisted Rabobank.
In a statement to the Dublin market this morning FBD confirmed it has received a further letter from Eureko BV but stressed that it has “not received an offer or an intention to make an offer.”
“The Board has, in conjunction with its advisers Goldman Sachs International and Goodbody Corporate Finance considered all aspects of the approach and has concluded that it is entirely without merit. Accordingly, the Board rejects this approach.”
However, Eureko said in a statement this evening that it had received no communication from FBD before its statement of rejection this morning.
“Eureko is disappointed that FBD has rejected its proposal without engaging in any form of dialogue with either Eureko or its advisers,” the statement said.
The Dutch company said it had advanced a proposal which it considered to be attractive to all FBD stakeholders “as it would create a significant financial services organisation with significant transaction benefits and strong commercial logic.”
“Eureko believes that its proposal provided FBD shareholders with a choice of certainty of value at an attractive cash premium or an ability to remain as shareholders in an enlarged listed vehicle,” the statement added. “Consequently, Eureko is now withdrawing its invitation to FBD to consider its proposal”
Earlier this month, Eureko said it had made an expression of interest to FBD although there was no binding offer. Reports have valued the potential deal around €1.2 billion ($1.9 billion).
Eureko is the Netherlands' largest insurer with more than 4.7 million clients, due to its merger with Agis in December.
FBD, which faces mounting competition in the Irish insurance market, also has interests in hotels, golf courses and holiday property developments.