Aviva investors have been cautioned against accepting a "mini-tender offer" from a U.S. firm, Litani, which is purchasing shares at a price substantially below market value. Campaign group ShareSoc is urging regulators to intervene, describing the offer as a "trap" for unwary shareholders.
Litani, based in Delaware, has contacted approximately 100,000 individual Aviva investors, offering to buy their shares for £5.30 each. This offer is considerably lower than Aviva's closing share price of £7.07 on August 10, 2026. The offer is set to expire on January 29 and is open on a first-come, first-served basis for up to one million shares.
Aviva itself has already communicated with its retail investors, many of whom acquired shares through the demutualization of Norwich Union, to advise them against accepting Litani's offer. ShareSoc has echoed this warning, advising shareholders to verify the market price before making any decisions.
"ShareSoc strongly disapproves of the mini-tender, which is, in practice, nothing more than a trap for those who have not fully understood its terms," the group stated. ShareSoc has called on the Financial Conduct Authority (FCA) to scrutinize this practice and issue a clear warning to consumers, endorsing Aviva's advisory to its shareholders.
Former pensions minister Baroness Altmann has also criticized the move, calling it a "cynical attempt to exploit the vulnerable shareholders." The practice is believed to be the first of its kind in the UK.
An FCA spokesperson noted that shareholders are not obligated to accept any offer and should carefully consider all available information, potentially seeking advice before proceeding. Aviva has a substantial base of around 500,000 retail investors, stemming partly from its integration with the former mutual Norwich Union.