U.K. Lawmakers to Probe LV= Takeover Bid by Bain: Guardian
(Bloomberg) -- A group of U.K. lawmakers will investigate Bain Capital’s 530 million pound ($728 million) deal for Liverpool Victoria Financial Services’ savings & retirement and protection businesses, the Guardian reported.
Members of the parliamentary group are concerned about the impact the deal will have on the company’s members, the insurance industry and competition in financial services, Gareth Thomas, the Labour MP for Harrow West and chair of the all-party parliamentary group for mutuals, told the Guardian.
The group is inviting LV= Chairman Alan Cook and CEO Mark Hartigan to give evidence. The inquiry will consider whether the company’s proposals are good for policyholders, competition and the business.
Hartigan told the Guardian it welcomes the opportunity to explain why Bain was singular in offering not only a good financial outcome for members but also a long-term commitment to LV=’s future prospects.
Members and policyholders weren’t given details on why Bain’s offer was selected over others, according to the report. The group’s board considered a bid from Royal London and received similar offers from other mutuals, the Guardian said, citing people familiar, but chose to go with Bain, which is better known for investing in other industries.
A spokesperson for LV= told the Guardian it sought a takeover bid because of restrictions on mutual insurance companies raising investment funds in the wider market.
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