England sponsor's shares leap after takeover snub

The Lloyd's of London insurer said late yesterday it had rebuffed the move as it "significantly undervalues" the group, but declined to reveal the bidder's identity.

It is thought the group's suitor is US private equity firm Apollo, which is said to be considering whether to return with a higher offer, according to the Financial Times.

Brit specialises in property and casualty insurance and became the England cricket team sponsor in January to boost brand recognition.

A 10 a share offer would mark a significant premium on the 729p closing price last night. But the group made a firm rebuttal of its unsolicited proposal.

It said in yesterday's statement that the approach did not "represent a basis on which the board is prepared to engage in any further discussions".

Apollo was not immediately available for comment.

The private equity group, led by Leon Black, is believed to have first approached Brit Insurance two weeks ago.

Brit distributes insurance and re-insurance worldwide through brokers, while it also operates in the Lloyd's of London insurance market and as an insurer to small and medium-sized firms.

Its shares were boosted in February with news of a 31 per cent leap in pre-tax profits, but the stock has since been held back after a move to concentrate on higher margin business rather than sales volumes.

This left gross written premiums down 13 per cent in the first quarter.

The firm is also trading at a 30 per cent discount to its asset value and revealed last month that the recent earthquake in Chile would deliver a 48m profits blow.