Trading in Independent Insurance shares was suspended on the London Stock Exchange yesterday following the company's announcement on Friday that it is planning a rescue share issue.
Shares in the company plunged 20% to 81.5p on Friday before their suspension at the request of the company.
The suspension will give Independent breathing space to organise the placing, details of which will be published in the next two weeks.
The company has also held preliminary takeover talks with a number of insurers, although these are expected to be placed on hold until the share placing is concluded.
A source close to Independent said the expected share issue would not be discounted and would be heavily underwritten by institutional investors.
He declined to indicate how much Independent expect to raise from the placing.
However, insurance analysts have said the company needs to raise at least £75m to fund its growth plans for 2001.
