Lloyd's underwriter Brit Insurance Holdings has gone hostile in its bid to take control of rival PRI Group, after PRI revealed it is talking to "other potentially interested parties."
In a statement Brit said that although it has received backing for the deal from shareholders representing 52% of PRI, it was concerned this would fall if PRI receives a higher offer. As a result it has tabled an offer worth £156m.
But PRI said discussions with other interested parties are continuing with a view to establishing whether a higher competing offer will be forthcoming.
PRI said: "We wish to ensure that all approaches received are given full consideration. Against that background, PRI shareholders are therefore strongly advised to take no action in respect of the offer by Brit at this stage."
Brit's first approach was revealed on 2 April and since then PRI's management has been considering the terms. Brit hopes to strengthen its UK motor and property insurance business through the acquisition, to create a group worth £687m.
The offer will be conditional on the approval of Brit shareholders at an extraordinary general meeting.
