Analysts say they would not recommend any less than £11

Five analysts have said private Equity firm Apollo will have to raise its offer for Brit Insurance by at least 10% to get the takeover through, Reuters reports.

Five analysts polled by Reuters said Brit would not accept an offer below the company's net asset value of about £11 per share, compared with the £10 indicative bid Apollo tabled last week.

"I think Brit have been pretty clear that they won't enter into a discussion until the offer is at year-end tangible book value," said Execution Noble analyst Joy Ferneyhough. "Management need to be careful because I don't see a large number of counterbidders lining up."

Low price

Brit shares are still short of Apollo's offer. "I don't think there are any rival bidders, and even if there are there is no reason to assume they see greater value than Apollo," said one banker who covers insurance.

The stock has traded at a discount to its peers because of Brit's focus on low-margin professional indemnity insurance, as well as perceived acquisition risk following the company's abortive bid for rival Chaucer last year.