Brit drops its Chaucer bid
BRIT Insurance withdrew its bid for rival Lloyd’s of London insurer Chaucer Holdings yesterday, as private equity group Pamplona ramped up its assault on Chaucer by further boosting its stake.
Brit said the board of Chaucer had decided not to recommend its £220m offer – worth almost a third less than for the group’s book value – to shareholders, forcing it to withdraw its interest.
This now clears the way for Pamplona, the private equity group headed by Russian-born tycoon Alex Knaster, to pursue its target of acquiring a 29.9 per cent stake in the insurer. It said yesterday it has now bought a further 3.99m shares taking its total stake to 10 per cent.
In the wake of the Brit retreat, Chaucer issued a separate statement revealing its chief executive Ewen Gilmour and chief financial officer Mark Graham are quitting the firm.
Gilmour is to retire and Graham is leaving to pursue other opportunities, the group said.
The move follows a rollercoaster period for Chaucer, which had to raise £75m earlier this year and has been in talks with potential suitors since January, after taking a hit from investment exposure to hedge funds last year.