Bain bid for LV= rejected as Royal London returns
Members rejected the Bain offer
Members of mutual insurer LV= have blocked a controversial takeover by US private equity firm Bain Capital.
The £530m Bain bid was supported by 69% of those who voted, but this fell short of the 75% required for the deal to go through.
LV= chairman Alan Cook resigned within minutes of the vote being confirmed. The board later confirmed it had received a new approach from Royal London on 8 December.
The proposal now includes the possibility of continued mutuality and is conditional on exclusive discussions.
This differs from the offer it received during the process in 2020.
A spokesperson for LV= said: “The outline proposal from Royal London is at an early stage and is subject to discussion, due diligence and detailed negotiation of financial and other terms. There can be no certainty that a transaction will be agreed.
“The board will consider this proposal seriously and undertakes to update members as soon as practicable. In evaluating the Royal London proposal, the board will continue to have regard to members and stakeholders best interests.”
Rejection of the Bain deal is a victory for critics, including MPs and some members, who were concerned about losing one of Britain’s largest mutuals.