Aviva takeover bid fails to add value

Differing attitudes to the use of European Embedded Value (EEV) proved a key factor in the failure of Aviva's £17 billion all-share bid for UK insurance rival Prudential, according to a senior analyst with wealth management firm Sanford C Bernstein.

Bruno Paulson said that Prudential's business model, which predicts strong growth in Asia under EEV, attracts a completely different set of investors to Aviva, which uses a top-down weighted average cost of capital that better suits its more cash

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