Two former UK government ministers have voiced strong criticism against a U.S. investment firm, Litani, for its attempts to purchase shares from Aviva's retail investors at a significantly reduced price. Ros Altmann, a former pensions minister, and John Glen, an ex-Treasury minister, have called the firm's actions 'cynical' and a potential exploitation of vulnerable shareholders.

Litani has reportedly contacted approximately 100,000 Aviva retail investors, offering to buy their shares for £5.30 each, a price substantially lower than the company's closing share price of £6.61 on July 13, 2026. Aviva itself has warned its shareholders against accepting these offers.

Altmann expressed her dismay, stating, "My blood is boiling. It is a cynical attempt to exploit the vulnerable shareholders, who will most likely be elderly, who could be bamboozled by the technical terms being used and the way it’s being presented to them and not understand what’s going on." She described the firm's approach as having "brazen brass neck."

Glen echoed these sentiments, calling it a "worrying development that needs urgent examination." He added that while "buyer beware" is a primary principle, the Financial Conduct Authority (FCA) should prevent such practices from becoming widespread.

The situation escalated after Aviva lost a High Court legal battle, which granted Litani access to its shareholder register. Aviva, which has a substantial base of around 500,000 retail investors, some of whom acquired shares during the demutualization of its predecessor, Norwich Union, is concerned about the implications.

There are concerns that other large publicly listed companies with significant retail investor bases, such as British Gas owner Centrica and BT, could become targets for similar tactics.

The FCA has acknowledged awareness of Litani's activities, advising investors to "carefully consider their options before making a decision." However, Altmann questioned the regulator's stance, suggesting it could be perceived as "an FCA-authorised scam" if not actively prevented.

Altmann has proposed that financial services legislation could be amended to halt such practices. Potential measures include altering rules regarding access to shareholder registers, prohibiting 'mini tenders' that offer deeply discounted prices, and strengthening requirements for FCA-authorized sponsors involved in these offers. Lawyers for Litani declined to comment on the matter.