Pamplona acquires Chaucer stake
Pamplona has acquired a 7.4% stake in Chaucer, locking horns with Brit Insurance over its proposed takeover of the struggling Lloyd’s of London insurer.
The London-based private equity group, financed by Russia’s Alfa Bank, said it intends to purchase a third of Chaucer’s outstanding shares.
“We have bought 7.4% of the company today and we are still discussion with the [Chaucer] board and are keen to put our proposal forward,” Pamplona said in a statement.
“We are just cautious and we can’t buy more than 10% as we haven’t got our FSA approval yet.”
FSA approval can take up to three months, Pamplona added.
Paul Thompson, Pamplona partner, said the group’s aim is to take a 30% stake in Chaucer.
“Our ultimate ambition is to get 29.9%, so we are just moving ahead really,” Thompson said.
Last week Brit said it would offer 0.23 shares, equivalent to 40.25p, for each Chaucer share.
Chaucer is currently discussing the offer with its leading shareholders, which include BlackRock and Scottish Widows.
Chaucer has been in merger talks with a number of companies after taking a knock from its exposure to hedge funds during the credit crunch.