So Aviva (LSE: AV) has decided to buy UK life insurance company Friends Life (LSE: FLG). Instead of paying cash, it is offering 0.74 of its own shares for each Friends Life share, valuing them at 374p each. The key question is: does this deal stack up for both sets of shareholders?
If Friends Life shareholders choose to sell up, they're getting a decent uplift compared to where the shares were trading before the deal. But some are more sceptical about what Friends Life does for Aviva.
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