Brit Insurance reject takeover approach

| June 13, 2010 | 0 Comments

Brit Insurance has rejected a takeover bid of £10-a-share from US private equity firm, Apollo.

Following the news, shares in Brit soared 20% after the company said the offer “significantly undervalues” the group.

Brit, which became the England cricket team sponsor in January, saw its shares rise above the 900p mark on Friday, before falling back to 878p.

However, according to the Sunday Telegraph, Apollo is considering a renewed bid for Lloyd’s of London insurer, Brit, since it is regarded as an attractive investment because its high dividend yield of 7% reflects its strong cash resources.

Apollo is being advised by Merrill Lynch Bank of America and West Hill.

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