Brit Insurance rejects improved Apollo bid
LLOYDS of London insurer Brit Insurance has rejected an improved takeover proposal from US buyout firm Apollo Management.
However, it indicated that it was open to further offers.
A possible revised offer of £10.50 per share, up from an original bid of £10 “undervalues the company,” and is not an acceptable basis for takeover talks, Brit said in a statement.
But the insurer left the door open to further approaches, saying it was willing to engage with Apollo if it tabled “an offer capable of recommendation.”
Brit rebuffed Apollo’s original £770m cash offer on 11 June.
The potential sweetened offer of £10.50 per share was put forward informally during contacts between the two sides’ advisers, Brit revealed.
Lloyd’s of London insurers, which offer cover against large-scale risks such as natural disasters, are seen as potential takeover targets because cyclically low insurance prices have weighed heavily on their shares.
However, analysts say a lack of well-funded trade buyers, and companies’ determination to hold out against opportunistic private equity bids, could mean few deals are completed.