Suncorp shares fell late last week after the company said in response to an Australian Securities Exchange price query that it is not in discussions regarding a takeover and that it has not received an offer. 

The shares spiked to a high of $20.48 on Wednesday following on online article on The Australian website that said Suncorp was understood to have entered preliminary discussions with Tokio Marine. The report followed previous speculation about interest from the Japanese insurer. 

Suncorp said in answer to the ASX that it was not aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities.  

As reported in a Breaking News, the company said it was aware of a speculative article published by The Australian online headlined "Tokio Marine and Suncorp said to have held preliminary takeover talks".  

“Suncorp confirms that it is not in discussions regarding a takeover and that it has not received a takeover offer,” the statement before the Thursday market opening said. 

The company’s shares fell 7.3% on Thursday and a further 0.8% on Friday to end the week at $18.35.  

The Australian had reported in July that Tokio Marine was interested in Suncorp and IAG, while The UK’s Financial Times in August reported that Suncorp was the preferred target for Tokio Marine. It said the Japanese insurer had also looked at IAG and Canada's Intact Financial Corporation. 

Tokio Marine’s latest annual report highlights its Aspiration 2035 plan, which includes the  pursuit of risk diversification. 

“We have always grown by taking on new risks and building a well-diversified portfolio. Going forward, we will accelerate that effort with greater ambition and pace,” CEO Masahiro Koike says. 

“This means expanding our presence in markets where our share of group profits remains relatively limited, including Australia, Canada, and Southeast Asia, deepening our geographic diversification.” 

Geographic and product line diversification will be pursued through a combination of organic growth and strategic mergers and acquisitions, he says.