Large shareholders back the Brit proposal for share buyout

Brit Insurance has confirmed that is has made an offer for Chaucer, offering 0.23 new Brit ordinary shares for every existing Chaucer share.

Brit said: “The possible offer remains conditional upon, inter alia, a recommendation from the Board of Chaucer. This is not a waivable pre-condition.

"This announcement does not amount to a firm intention to make an offer and, accordingly, there can be no certainty that any offer will be made even if the above pre-condition is satisfied.”

Chaucer shareholders want to accept the to create an £800m Lloyd’s firm to rival Hiscox, Catlin and Amlin, the Times reports.

Brit has yet to launch a formal offer, an agreed deal between the two sides could emerge by the end of this week.

Chief executive Dane Douetil last week toured Chaucer’s investors.

Chaucer chairman Martin Gilbert has been lobbied to accept the deal by the rebel investors, who are thought to include Aberforth Partners.