AM Online

Cox rejects Wood bid

Direct Line founder Peter Wood has hit out at Cox Insurance yesterday after the eighth-ranked UK motor insurance company rejected his purchase offer worth between 85 and 100p a share. The insurance magnate, who is currently involved in the Esure insurance business with the Halifax and Bank of Scotland Group, alleges that Cox had “actively encouraged” his bid.

According to a report in the Times today, Mr Wood says that he would nevertheless still be interested in reopening talks if Cox agreed to the idea. Cox has told the London Stock Exchange that it had ended discussions with Mr Wood over the bid – citing “insufficient substance and value to the proposal.”

The bid values Cox at up to £250m. Cox took a major hit with the 9/11 World Trade Centre attack and is thought to have huge on-paper losses which have resulted in the group's market value slumping from £612m just four years ago.

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Login to comment


No comments have been made yet.