?Homeserve said this week it had pulled out of talks to buy specialist warranty and elect-rical appliance insurer Dom-estic & General Group (D&G).
Meanwhile, D&G confirmed that it was in discussions with other potential bidders saying it was “confident that sig-nificant value can be realised for shareholders through a premium offer or as an independent group”.
Homeserve said it not been put off by market turbulence but had decided not to pursue an offer.
Sources close to the com-pany indicated that com-pleting the deal with D&G was not crucial to its expansion.
Analysts said that Home-serve could still achieve double-digit growth without the acquisition.
They also questioned whether D&G could achieve a bid at a significant premium given the current turmoil in the credit markets.
Homeserve announced in May that it had approached D&G with a view to entering into discussions about a potential offer.
D&G’s shares have fallen steadily over the past month, from a three-month high of 1,475p. As Insurance Times went to press shares were trading at 1,208p.
Shares in Homeserve have also been under pressure during the last quarter, falling from 1,888p.
Shares were trading at 1,718p as Insurance Times went to press.
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