UK-based mutual life insurance firm LV= has called off talks of a potential $701m takeover by private equity firm Bain Capital after losing the member’s vote.
The deal would have demutualized LV= with each member receiving £100 as compensation.
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However, the deal did not get enough support from the members, who said they were not being compensated adequately.
During the voting process, 69% of a possible 1.1 million voting members favoured the takeover by Bain Capital, 75% threshold was required for the vote to pass
LV= chairman Alan Cook noted that the outcome will not impact any policies.
Cook added: “I will continue to lead the Board, and I am committed to finding the best deal for members, however, I would also like to confirm that as soon as a way forward is agreed, I intend to step down as the LV= chair.
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By GlobalData“LV= today continues to have an appropriate capital position and we will continue to trade as usual, with no impact on customer policies or business as usual activity.”
Separately, Royal London, a former bidder of LV=, has also made an offer to enter exclusive talks with LV= for a mutual merger, which will allow members to remain part of the insurer.
LV= said: “The outline proposal from Royal London is at an early stage and is subject to discussion, due diligence and detailed negotiation of financial and other terms. There can be no certainty that a transaction will be agreed.”
