Cox shares soar after Wood offer rebuffed

Cox's share price rose by 29.3% after it turned down a buy-out led by Direct Line founder Peter Wood. Insurance Times tipped that Wood would try to buy Cox in June after he purchased a stake.

The Lloyd's insurer refused a bid worth £295m, describing it as "of insufficient substance and value."

It said in a statement it was not in talks with any party about a possible takeover, .

Wood, an old friend of Cox retail chief executive Neil Utley, proposed to buy the company for between 85p and 100p a share.

The stock was trading at 79p on Tuesday.

Under the deal's terms, Cox's board would have stepped been replaced by a team led by Utley, with Wood as non-executive chairman.

Wood is currently chairman of Esure, the general insurance arm of HBOS.

Wood was understood to have been encouraged to work on the bid for months.

Esure took a 1.3% stake in Cox when the insurer issued new shares earlier this year.