Senior managers at Lloyd's broker Windsor are understood to be closing in on a management buy-out (MBO).

The company's executive directors announced they had been considering making a formal approach to Windsor in September.

According to industry sources the MBO is now currently "going through" with the help of an unnamed venture capitalist.

But, the source added: "The view is [the management] has not offered enough, but they will come back with a higher price.

"Once management disclosed its intention to buy the company it cannot leave it. Windsor is going to be sold; the question is, at what price?"

The announcement has led to increased share activity in recent weeks with a number of investors increasing their share volume in the company.

Windsor said it had no comment to make following the announcement that executives were considering making an offer to buy the broker.