Australia's Challenger rejects Daiichi Life unit takeover bid, but open to further talks

By Reuters News

Oct 26 (Reuters) - Australia's Challenger CGF.AX said on Monday an indicative proposal from a unit of Japan's Daiichi Life 8750.T to buy more than 79% of shares in the Australian investment manager is "not at a level it could recommend to shareholders".

  • Earlier this month, TAL Daiichi Life Australia made an indicative proposal of A$11.80 per share, valuing Challenger at A$7.94 billion ($5.58 billion).

  • Challenger said on Monday its board intends to engage with TAL Daiichi Life Australia Pty to see whether a proposal can be reached "that the board could recommend."

  • "There is no certainty that the proposal will result in a binding offer or that any transaction will eventuate," the Australian firm said in its statement.

  • Shares of Challenger were down as much as 1% to A$11.80 per share by 2313 GMT.

  • Japanese insurer Daiichi Life, the parent firm of TAL Daiichi Life Australia, did not immediately respond to a Reuters request for comment.

($1 = 1.4241 Australian dollars)

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