2,000 jobs May be at Stake as Aviva bid for Friends Life
Approximately two thousand insurance jobs may be on the verge of trimming as Aviva tries to soothe uncertainties regarding its bid for Friends Life.
Some analysts called Friday's £5.6 billion deal as a scope for Aviva to raise its dividend; some others remained unconvinced, with a single question in mind, thinking whether this was anything but "a rights issue in disguise".
The analysts feel that Aviva has to go through substantial cost savings for convincing the investors to back its "doubling up" on the bet in the British market. This will surely result in heavy job cuts.
On Friday, Aviva plc, the British life and health insurer agreed to the terms for a likely all-stock acquisition of its smaller rival Friends Life Group Ltd. If the deal works out then it will create the largest insurance, savings and asset management company with sixteen million customers. Both the companies confirmed about reaching an agreement on the major financial issues related to a lokely all share combination.
However, till now there is no surety that Aviva will go ahead to make an offer for its smaller rival Friends Life.
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