Row after row The future of giant insurance company LV is in peril after Royal London offered a takeover.
The controversial pitch to the board of LV – a mutual owned by its members rather than shareholders – would see the insurer split with private equity giant Bain Capital. Royal London would assume many of the LV’s policies while Bain would split off the remainder of the brand.
The Royal London has been highlighting the importance of LV retaining mutual ownership and this deal was made in a confidential email that The Mail saw on Sunday.
It comes after the board of LV faced furious criticism for recommending a £530 million takeover offer from Bain.
Liverpool Victoria Insurance has asked its members, who would receive £100 each under the Bain deal, to support the decision in a vote set for next month
LV has asked its members, who would receive £100 each under the Bain deal, to support the decision in a vote set for next month.
The deal has drawn fire from politicians from across the parties, including Lord Heseltine who said the payment represented ‘30 pieces of silver’ and urged members to reject the offer.
The email, sent to LV chief executive Mark Hartigan, pictured, proposes ‘an early three-way discussion’ between Royal London, Bain and LV should it become clear that LV members will reject the proposal
Criticisms have argued that mutual ownership is a good idea and the members of 1.2 million LV are not being compensated enough for supporting the deal.
The email, sent to LV chief executive Mark Hartigan, proposes ‘an early three-way discussion’ between Royal London, Bain and LV should it become clear that LV members will reject the proposal.
Talks between the three firms would ‘consider if the current proposal could be enhanced in order to be more attractive to your members’, the email states.