- American Equity Investment Life ( NYSE: AEL ) rose 7% after a report that Prosperity Life Insurance Group made an unsolicited offer to buy the rival insurer.
- Prosperity Life, which is backed by activist fund Elliott Investment Management, made an offer at a premium to AEL's current share price, according to traders, who cited a Bloomberg report. Property Life could still decided not to move forward with a bid. AEL has a market cap of $3.45 billion.
- The offer comes after Raymond James on Monday initiated the life insurer with a strong buy on the execution of AEL's restructuring plan and its potential to be targeted as a takeout candidate.
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American Equity Investment Life jumps on report of Prosperity Life takeover bid