Simon Ware-Lane looks set to take control of Claims Direct by the end of this week.
Last week, former chief executive Colin Poole and former co-founder Tony Sullman increased their stake in the company from 42.8% to 55.6% when their 10p a share bid was accepted by shareholders.
Insurance Times revealed the duo were in fact in negotiations to pass on Claims Direct to Ware-Lane, the millionare of smaller rival Claimline.
Under regulatory requirements, Ware-Lane would have had to make a bid for the entire firm to gain control.
Now Poole has said it is likely negotiations for the purchase will be completed in the next two days. “We are hopeful of concluding a deal by the end of this week,” he said. “We will then announce terms of the deal.”
Poole said there had been “no serious interest” from other parties and added he and Sullman would be stepping down from the board if the bid is satisfactorily completed.