Cox Insurance has announced it has called off talks with insurance entrepreneur, Peter Wood, over a management buy-out of the company.
In a report in the FT, Cox issued a statement saying: "Following initial discussions between the two parties, Cox Insurance Holdings concluded that there was insufficient substance and value to the proposal to justify continuing talks.
"Accordingly Cox...is not in talks with any party concerning a possible offer for the company."
The founder of Direct Line insurance, Peter Wood, had been believed to be making a private £200m to buy motor insurance group Cox.
Several weekend reports had suggested that Wood had made a preliminary approach to Cox last week with an offer to takeover the business.
The offer is understood to have been at a premium to Cox's current share price of 61.5p, which values the business at £189m.
Cox is however understood to have rejected the approach as undervaluing the business - Cox is currently valued at 61.5p a share, or £189m.
The takeover approach comes after a difficult time for Cox.
The group was badly hit by losses from the World Trade Centre disaster.
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