🚫Members vote no to insurer LV £530m takeover

View this email in your browser
13th December 2021

Bite-sized business news from the UK and beyond
Good morning The award for the best final of the weekend goes to I’m A Celebrity and the most disappointing would have to be the F1 season finale in Abu Dhabi. Let’s hope Strictly does better when it concludes this Saturday!
Share for a chance to win £100 Deliveroo voucher Share for a chance to win £100 Deliveroo voucher
Today's stories
  • Members vote no to insurer LV £530m takeover
  • Could BT be next in line for a buyout?
INSURANCE
Members vote no to insurer LV £530m takeover


What’s going on?
Members of LV have rejected the proposal to sell the insurer to US private equity firm Bain Capital, leaving its future up in the air.


Why is this important?
LV, previously known as Liverpool Victoria, has been owned by its member-customers since being founded 178 years ago. This structure is called a mutual. Last year the insurer received a £530m offer from Bain that would see it lose its mutual status.

This provoked a backlash as the 1.2m members would each only get about £100 while the investment banks advising LV would get millions, one of whom is the Conservative Party treasurer. 

At the all-important vote on Friday 69% of members approved the takeover, just shy of the 75% needed. Given how relatively high profile the deal had been - the Daily Mail and some MPs campaigned against it -  it was perhaps surprising that only 15% of members actually voted.

Takeaway
So what now for LV? The board and management had argued that the business had little future as a stand-alone company, being too small to compete with better funded peers.

Last month fellow mutual insurer, Royal London, stepped in with a counteroffer of £540m which LV believed was a way to torpedo the Bain deal.

But given that a merger with Royal would keep the mutual status, that might be an easier pitch to members than selling out to a US private equity firm.
TELECOMS
Could BT be next in line for a buyout?

In June French billionaire Patrick Drahi, bought a 12% stake in BT worth £2bn, becoming the telecom company’s largest shareholder. Under UK rules Drahi was not allowed to buy anymore of BT for six months. At the time he ruled out a full-blown takeover, but with the restriction expired on Saturday all bets are off.

What’s behind the move? Drahi said he believes BT has a compelling opportunity to deliver the expansion full-fibre broadband throughout the UK. Earlier this year BT announced plans to invest billions in getting full-fibre broadband connections to 20 million homes by 2026.

Who is Patrick Drahi? He’s quite the globetrotter holding French, Moroccan, Portuguese and Israeli citizenship and now lives in Switzerland. He founded French media and telecoms giant Altice over 20 years ago and has made investments in telecoms businesses in the US, Portugal and Israel. He has a keen interest in art, owning works by Picasso, Matisse as well as the auction house Sotheby’s. Forbes estimates his net worth at over $12bn.

What’s next? The past year has seen a number of high-profile British companies fall into foreign ownership in the face of heavy opposition. Taking over a former-state owned phone company would be a bold and challenging move.

From next month, the government will gain new powers to block the takeover of key national assets like BT. If Drahi makes a move, it would undoubtedly be investigated by regulators and face government scrutiny.
Stat of the day

Orders of superyachts have reached a record this year jumping 25% buoyed by billionaires' wealth which has grown by more than £2.5trn during the pandemic
Other stories to keep you in the loop
  • Every adult to be offered booster jab by end of December, says Boris Johnson
  • Bankers set for biggest bonuses since the financial crisis
  • JD Sports concedes defeat Footasylum in takeover battle with watchdog
  • City offices to stay open as bosses challenge Boris Johnson’s home working plea
  • US inflation surges to highest level since 1982
  • Omicron has had little impact on Christmas shopping visits says Primark owner
  • Royal Mail staff absences almost double levels of 2018
Interesting links from around the web
Forward to Friend Forward to Friend
Not a subscriber? Join free
Twitter
Sent this by a friend? Sign up here
How did you like today's email?
Get in touch with any feedback or even just to say hi
hello@marketloop.co

Copyright © 2021 Market Loop, All rights reserved.

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list (and break our hearts).

 






This email was sent to you
why did I get this?    unsubscribe from this list    update subscription preferences
Market Loop · 16 Great Chapel St · London, London W1F 8FL · United Kingdom

Email Marketing Powered by Mailchimp

Key phrases

Older messages

🅱How will plan B impact the economy?

Friday, December 10, 2021

.... and ☕Coffee prices hit decade high View this email in your browser 10th December 2021 Good morning Let's kick today off with an encouraging quote. This week JPMorgan published a report saying

👗TikTok launches ecommerce in the UK

Thursday, December 9, 2021

.... and 💰 Monzo raises $500m View this email in your browser 9th December 2021 Good morning Yesterday marked the first anniversary since Margaret Keenan became the first person in the UK, and indeed

🚌Transport for London faces job cuts as funding deadline looms

Wednesday, December 8, 2021

.... and 💪 UK startup raises $11m to take activist investing to the masses View this email in your browser 8th December 2021 Good morning The award for the world's worst Zoom meeting must surely go

🍔EU regulation fears sinks Deliveroo shares

Tuesday, December 7, 2021

.... and 🎄 Tesco workers plan festive strike View this email in your browser 7th December 2021 Good morning The latest Global Drug Survey has named Australia as the drunkest country in the world after

👢Booted off?

Monday, December 6, 2021

.... and🍟 The chips are down View this email in your browser 5th December 2021 Good morning Last week the US adopted a new way for creditors to chase down debts using social media. Debt collectors can

Consumer prices reach 30 year high

Thursday, January 20, 2022

.... and Peloton considers drastic turnaround plan View this email in your browser 20th January 2022 Bite-sized business news from the UK and beyond Good morning Yesterday 102 millionaires and

Planes are grounded

Thursday, January 20, 2022

Good morning! BharatPe doesn't have it Better. The fintech company's MD and co-founder Ashneer Grover, who is also a judge on Shark Tank India, has taken a “voluntary leave of absence”

Jan. 19 - Escada America files Ch. 11 | Forever 21 names new CEO

Wednesday, January 19, 2022

Women's fashion retailer Escada America files for bankruptcy; Forever 21 turns to retail veteran Winnie Park as CEO; Are Sephora and Ulta on a collision course?; Walmart signals metaverse plans

Assessing PE mega-fund growth

Wednesday, January 19, 2022

A new look at fund performance; Microsoft scores Activision Blizzard for $68.7B; Curbio brings home $65M; Mythical Games lands Polystream Read online | Don't want to receive these emails? Manage

Big News: I Just Sold the Niche Site Project 4 Site!

Wednesday, January 19, 2022

I have BIG news to share today! I've officially sold my site, OwnTheYard.com! This has been my public case study site for Niche Site Project 4 over the past 3 years. You can read all the news about

Jan 19: BetMGM CEO: market getting smarter

Wednesday, January 19, 2022

BetMGM FY21 update, Full House Q4 preliminary results, Esports Technologies earnings guidance, Michigan Dec21, NeoGames/Aspire reaction. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Posting better LinkedIn content...

Wednesday, January 19, 2022

Curious about NFTs, Reader? If you're ready to discover how to use Web 3.0 to grow your business, we've just launched a new show all about this exciting new frontier. Simply search “Crypto

Jan. 19 - Anheuser-Busch refreshes logo | Oscar Mayer's 'bologna-inspired' face mask

Wednesday, January 19, 2022

Oscar Mayer's 'bologna-inspired' face masks poke fun at self-care; As events again go virtual, marketing takeaways from a timely metaverse activation; TV tops in video for reaching

Digital Marketing in 2022: KPIs & Metrics That Matter

Wednesday, January 19, 2022

Learn how to set effective, data-backed KPIs and metrics to accurately assess your strategies. Learn how to set effective, data-backed KPIs and metrics to accurately assess your strategies. What: KPIs

How to Use Instagram Insights (in 9 Easy Steps)

Wednesday, January 19, 2022

If you're using Instagram in your role, it's critical to analyze your performance to make better marketing decisions on the platform. HubSpot Marketing Blog Jan. 19, 2022 marketer reviews