Daniels 'ruled out as Aviva chairman'

AVIVA is set to drop former Lloyds Banking Group boss Eric Daniels from a shortlist of candidates to become its next chairman, according to weekend reports.

Daniels is understood to have been ruled out after some of the insurance giant's biggest shareholders told the company they would not accept his appointment.

Investors are believed to have raised Daniels' acquisition of debt-laden HBOS and the consequent "value destruction" at Lloyds as the reason why they would not like him to replace Lord Colin Sharman, who steps down in 2013.