Zurich Insurance said to have asked RSA for more time to table bid

Zurich Insurance has reportedly asked its bid target RSA for more time to come up with a formal offer for the London-listed company after the two sides made progress on the prospective deal over the weekend.

The Financial Times cited people familiar with the matter as saying that RSA is most likely going to agree to ask the UK’s Takeover Panel to extend a deadline set for this Tuesday for Zurich to make a firm bid or withdraw for six months.

According to the FT, advisers had made headway on talks, described as friendly, since Friday.

Still, there was no certainty RSA would request an extension. Zurich had called for more information on matters ranging from RSA’s near-£8bn pension scheme to regulators’ view of its balance sheet under new capital requirements.

RSA had been holding out for as much as 600p a share from Zurich, but one person cited by the FT said the insurer’s investors were eager to ensure the opportunity does not slip away because of the Takeover Panel deadline.

At 1033 BST, shares in RSA were down 0.3% at 490p. while Zurich Insurance was down 2.5% at CHF266.70.