Our take on the two bids.

Challenger shares jump 19% to eight-year high after Japan's Dai-ichi Life unit makes $11.80 takeover offer. The non-binding proposal values Challenger at A$11.80 per share, but remains subject to due diligence, regulatory approvals and a board recommendation. Published 10/19/26 AT 4:44 PM AEDT SYDNEY - Shares of Challenger soared more than 19% on Monday after the Australian annuities provider received a takeover proposal from the local unit of Japanese insurer Dai-ichi Life valuing the company at about 7.9 billion Australian dollars. Challenger shares closed up 1.90 dollars, or 19.29%, at 11.75 dollars, the session high, after trading as low as 11.05 dollars. More than 8.5 million shares changed hands. The shares reached their highest level since October 2018, according to Reuters. Challenger said TAL Daiichi Life Australia, a subsidiary of Dai-ichi Life Group, submitted a non-binding, conditional proposal to acquire the roughly 79.5% of Challenger shares it does not already own for 11.80 dollars per share through a scheme of arrangement. The offer represents a 19.8% premium to Challenger's closing price of 9.85 dollars on Friday and a 17.7% premium to its one-month volume-weighted average price of 10.03 dollars. The proposal values Challenger at about 7.94 billion dollars, according to Reuters, with the stake TAL does not already hold worth roughly 6.3 billion dollars. The proposal was received after the market closed on Friday, Oct. 16. Board reviewing "The Board of Challenger is considering the indicative offer," the company said, according to Reuters. The proposal is subject to several conditions, including satisfactory completion of due diligence, a scheme implementation agreement, regulatory approvals and a board recommendation. Challenger cautioned that there is no certainty the proposal will result in a binding offer or completed transaction and told shareholders they do not need to take any action. Dai-ichi Life separately confirmed that its unit had submitted the proposal, adding that no decision had been made on proceeding with a binding transaction. Long-standing shareholder Dai-ichi Life first acquired a 15.1% stake in Challenger from Japan's MS&AD Insurance Group Holdings in April 2025 and has since increased its holding to about one-fifth of the company. Dai-ichi Life has been expanding its presence in Australia and New Zealand. TAL is one of Australia's largest life insurers, and the Japanese group recently agreed to acquire New Zealand's Fidelity Life. Shares below offer price Despite the surge, Challenger's shares closed just below the offer price, suggesting investors see some risk that a binding deal may not materialize or that regulatory approvals could take time. Challenger is Australia's largest provider of annuities, which pay retirees a regular income. The company has benefited from growing demand for retirement income products as Australia's population ages and its superannuation system matures. The company also released first-quarter results on Monday. Challenger shares are up about 32% over the past year. What's next Challenger's board will assess the proposal and engage with TAL Daiichi Life. If the parties agree on terms, Challenger would enter a binding scheme implementation agreement, followed by a shareholder vote and regulatory approvals, including from the Australian Prudential Regulation Authority and the Foreign Investment Review Board. MEET IBT NEWS FROM BELOW CHANNELS

Daiichi Life unit proposes takeover valuing Challenger at A$7.94 billion. The Japanese insurer's unit proposes paying A$11.80 a share for the rest of the Australian investment manager, with Challenger's board considering the conditional offer. A unit of Japanese insurer Daiichi Life has submitted a preliminary takeover proposal that values Australian investment manager Challenger at A$7.94 billion. Challenger disclosed the proposal on October 19, according to a Reuters report carried by CNA.[1] The bidder, TAL Daiichi Life Australia Pty, already holds 20.36% of Challenger, according to LSEG data cited by Reuters. TAL proposes buying the remaining shares - more than 79% of the company - which would give it full ownership if completed.[1] The proposed price is A$11.80 a share, 19.8% above Challenger's closing share price on the preceding Friday. The A$7.94 billion valuation is for Challenger as a whole, rather than just the shares TAL proposes buying.[1] Challenger said the proposal is subject to several conditions, including satisfactory completion of due diligence - a detailed examination of the business. Its board is considering the indicative offer; the takeover has not been agreed or completed.[1] Sources. Follow AveNews on X Join the list for future editions.