Chaucer’s board voted against recommending the deal, after talking to the shareholders

Chaucer, a Lloyd’s of London insurer, has rejected an all-share offer from rival Brit Insurance (Brit), and has declared that Ewen Gilmour, CEO, plans to retire – reported

Brit said that it has pulled its offer of 0.23 new Brit ordinary shares for every existing Chaucer share, as it was not interested in going ahead without an approval from the Chaucer board. It was “not in the best interests of its shareholders” to sweeten the offer, the company clarified.

Chaucer’s board voted against recommending the deal after talking to shareholders, including BlackRock, the US fund management group, and Scottish Widows.

The shareholders believed that the group’s financial position was on the high, and it might draw a better offer at a later date.

A pursuit is in progress to replace Mr. Gilmour, who will step down at the end of the year. Mark Graham, the company’s Chief Financial Officer, is also departing with immediate effect. Ken Curtis, Finance Director of Chaucer Syndicates, would hold the position on a provisional basis.