British Insurer LV= Rejects Bain Takeover Bid; Royal London Wants to Talk
The Bain deal had faced resistance from many of the 1.2 million members who currently own LV=, who said they were not being sufficiently compensated for the loss of the insurer’s mutual status.
The deal would have given LV= members 100 pounds each if it had gone ahead.
But a lawmakers’ report in April had said it was very difficult for LV= members to assess if demutualisation was in their best interests or not.
LV=, which was founded in 1843 to help people with funeral costs and was formerly known as Liverpool Victoria, needed support for the deal from 75% of members who voted, but only 69% backed it.
“We will continue to do everything possible to find a solution that can deliver a continuation of the LV= brand and security for our 1,300 employees,” Chairman Alan Cook said in a statement, adding that he intended to step down once a way forward had been found.
Royal London, a former bidder for the life insurer, said in a separate statement that it had offered to enter exclusive talks with LV= for a merger which would enable LV= members to remain part of a mutual insurer.
LV= said it would consider the proposal.
A spokesperson for Bain Capital said the firm respected the outcome of the vote and had “always wanted LV= to flourish.” ($1 = 0.7561 pounds)
(Reporting by Pushkala Aripaka in Bengaluru and Carolyn Cohn in London; Editing by Louise Heavens and Keith Weir)
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