QBE this morning extended its proposal to take over IAG for a further two weeks, without change to the terms.

The move - widely predicted by analysts - is expected to result in the IAG Board coming under increased pressure from the investment community to at least discuss the proposal with QBE.

QBE also announced this morning that it's working on the acquisition of "a number of its distribution channels".

In a statement to the stock exchange this morning, QBE CEO Frank O'Halloran says the extension of time for IAG will "allow stakeholders more time to consider the impact of IAG's profit downgrade announced last week and the value of QBE shares".

"QBE remains interested in seeing through a friendly merger with the recommendation of IAG's board," he said. He did not elaborate on any possible alternative action should the IAG board remain intransigent in its refusal (in public at least) to negotiate until a higher price is put on the table. And Mr O'Halloran has given no indication today that he's prepared to budge.

"Our proposal, based on QBE's share price at the close of business on May 5, is equivalent to $4.33 per IAG share," he said. "This is 16% above IAG's VWAP [volume-weighted average price] prior to our proposal on April 11; a VWAP we believe already included an acquisition premium."

QBE also reserved the right to extend the period "during which it is willing to discuss the proposal with IAG" beyond the new May 19 deadline.

Analysts believe QBE will have to sweeten the amount it is prepared to pay to between $4.50 and $4.80 a share. While they are pushing the higher potential value of a combined IAG/QBE, the major analysts are also aware that IAG has a very large retail investor base, which is more likely to follow the lead of the board than institutional investors would.

The other acquisitions QBE is working on involve five separate transactions in the United States and Australia which the group expects will produce additional net written premium of "close to $200 million and incremental insurance profit before tax of around $70 million" next year.

However, it has not provided details of which companies are involved, or what type of "distribution channel" is being acquired. Mr O'Halloran says the acquisitions are expected to be completed by the end the year and will be funded from existing resources.

He says the acquisitions "will both secure and enhance our existing businesses in the US and Australia".

insuranceNEWS.com.au will keep you informed of any developments.