Apollo raises bid price as it targets Brit

Published on Wednesday 28 July 2010 15:10

APOLLO Management has raised its takeover bid for Brit Insurance to 1,075p per share, valuing the Lloyds of London insurer at £852 million.

Dane Douetil, chief executive of Brit, said yesterday's revised approach was a step forward in the proceedings after the firm rebuffed a proposal of 1,050p per share earlier this month.

"On behalf of shareholders, we think it is a good basis on which we can start to have discussions," Douetil said.

Brit, which sponsors the England cricket team, said it had opened its books to the US buy-out firm, after yesterday unveiling an interim pre-tax profit which smashed market expectations.

Analysts said the sweetened approach from Apollo, although not formally recommended by Brit, indicates a deal is likely to go ahead.

Christian Stobbs at KBC Peel Hunt said: "The strong H1 results should provide reassurance to Apollo and we believe the probability of a formal bid now coming has increased."