U.K. regulators are looking into Aviva Plc's plans to cancel £450 million of preference shares, The (London) Times reported March 15.
Aviva indicated earlier in March that it could cancel the shares, which have coupons of over 7%, to save money and return capital to shareholders. This invited criticism from other firms that saw the value of their own preference shares fall, as investors considered the possibility that other issuers could cancel them too.
The Financial Conduct Authority is questioning whether the company provided sufficient information to the public regarding the decision, and the basis upon which the firm is taking this action.
