By Stuart Condie
SYDNEY--AUB Group shares tumbled to an eight-month low after a private-equity consortium walked back a US$3.44 billion buyout offer following weeks of exclusive due diligence on the Australian insurance broker.
After an hour of Monday's session, the stock was down by 18% at 30.69 Australian dollars, equivalent to about US$20.10.
The drop came after AUB said EQT Group and CVC Capital Partners had indicated they wouldn't formalize their A$45-a-share indicative proposal.
AUB said that discussions had ended and that its board still believed A$45 a share was an appropriate price.
"The recent due diligence process, while demanding, has reaffirmed our confidence in our improvement initiatives and long-term growth prospects," AUB Chief Executive Michael Emmett said.
Monday's fall took the stock to its lowest level since April, and below the A$32.10 it was at prior to Australian media reports of an all-cash proposal by Sweden's EQT.
AUB confirmed the unsolicited proposal on Oct. 28 and granted EQT exclusive due diligence. On Nov. 10, AUB said that EQT had formed a consortium with CVC.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
November 30, 2025 19:23 ET (00:23 GMT)
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