Aviva has issued a formal warning to its shareholder base regarding a coordinated effort by US investment firm Litani to purchase its shares at prices significantly below market value.
The insurer, led by CEO Amanda Blanc, described the activity as a predatory tactic designed to exploit less sophisticated investors who may not be aware of the true market price of their holdings.
This development marks a new escalation in the ongoing scrutiny of such 'mini-tender' offers targeting UK-listed companies.
The report, first detailed by Thisismoney, highlights how Litani is circling thousands of private shareholders, offering to buy their shares in a manner that critics argue cynically exploits human nature and information asymmetry.
These types of arbitrage strategies often target retail investors who may not actively monitor their portfolios, presenting them with an offer that appears convenient but is financially disadvantageous compared to selling on the open market.
Aviva's intervention underscores the broader challenge faced by listed companies in protecting their shareholder base from aggressive third-party acquisition attempts.