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Royal London prepares to pounce if LV’s Bain deal rejected

Royal London poised to launch accelerated bid for rival LV if a sale to US personal fairness big Bain collapses

Royal London is poised to launch an accelerated bid for rival LV if a sale to US personal fairness big Bain collapses on Friday, The Mail on Sunday has realized. 

Members of mutually-owned insurer LV will submit ultimate votes this week with a minimal of 75 per cent required to approve the deal. 

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Last evening, sources stated the vote might go to the wire, with one suggesting advisers on the deal had been already contemplating ‘contingencies’. An official takeover bid by Royal London will quell weeks of hypothesis over whether or not the pensions big will swoop to salvage LV. A supply stated Royal London shall be ‘prepared fairly quickly’.

Set to enter the fray: An official takeover bid by Royal London will quell weeks of speculation over whether the pensions giant will swoop to salvage LV

Set to enter the fray: An official takeover bid by Royal London will quell weeks of hypothesis over whether or not the pensions big will swoop to salvage LV

It is known that Royal London might make the supply as quickly as per week tomorrow. But it is not going to come ahead with a counter-bid until LV’s members vote in opposition to the sale to Bain. 

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It is feasible Bain additionally might desk a brand new bid. 

LV’s plan to promote to Bain for £530 million has met a wave of opposition. Critics have warned members they are going to obtain simply £100 in return for giving up their mutual standing. But, in a last-ditch try to swing the vote, LV final week despatched an e-mail urging its 1.2 million members to assist the deal. 

The e-mail, seen by The Mail on Sunday, stated voting in opposition to the deal ‘is not going to see LV stay as it’s immediately’. 

It added: ‘We will nonetheless have to search a purchaser, which can lead to additional deal prices being incurred, the probability of decrease returns for members than the Bain Capital transaction, in addition to the potential lack of model and jobs.’ 

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It stated 271,000 with-profits policyholders will obtain between £52 and £630 on common, relying on the coverage quantity and time held. 

Royal London’s counter-bid will contain a merger with LV.

Make your voice heard on LV 

We are encouraging LV members, prospects, or others, who would really like to see it retain its mutual standing, reasonably than be purchased out by personal fairness,  to write to it.

You might use the wording from the letter printed within the Daily Mail newspaper’s City pages (pictured right here).

We have included the phrases for you to copy and paste right into a letter beneath. 

Send it to Alan Cook, Chairman of LV=, Liverpool Victoria, County Gates, Bournemouth, BH1 2NF 

Dear Alan Cook,

I, the undersigned, urge you to rethink your determination to promote LV= to Bain Capital and as a substitute preserve its mutual standing. 

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