Shareholders of the insurance giant Aviva are being warned against a "trap" set by a U.S.-based firm attempting to acquire their shares at a significantly reduced price. The campaign group ShareSoc has publicly urged Aviva investors to be vigilant and is calling for the Financial Conduct Authority (FCA) to investigate the tactics employed by the American investment firm, Litani.
Litani, based in Delaware, has reportedly contacted approximately 100,000 individual Aviva investors with an offer to purchase their shares for £5.30 each. This offer is substantially below the stock's closing price of £7.07 on August 10, 2026. ShareSoc has condemned this "mini-tender offer," describing it as a mechanism designed to exploit shareholders who may not fully understand the terms or market value of their holdings.
Aviva itself has already alerted its retail investors, a group numbering around 500,000 that includes individuals who received shares through the demutualization of Norwich Union, to disregard Litani's offer. ShareSoc echoed this sentiment, advising shareholders to "check the market price before doing anything."
This practice is believed to be the first of its kind in the UK. Litani's offer, which is open until January 29, allows the firm to purchase up to one million shares on a first-come, first-served basis. Former pensions minister Baroness Altmann has also voiced strong criticism, calling the offer a "cynical attempt to exploit the vulnerable shareholders."
An FCA spokesperson stated that shareholders are not obligated to accept any offer and should carefully consider all available information before making a decision, potentially seeking advice. The regulator has been urged by ShareSoc to provide urgent scrutiny of this practice and issue a clear warning to consumers.