Wood attempting to buy out Esure

 

Peter Wood, the founder of several insurance companies, is lining up financing to buy out his Esure motor insurance business from Lloyds Banking Group, the Sunday Times reported.

The newspaper said Wood had lined up financing from the buyout firm Penta Capital and hedge fund Toscafund for the group, which is valued at between 200 million pounds and 250 million pounds.

Wood chairs the group after setting it up as a joint venture with bank HBOS in 2001, but the newspaper said Lloyds inherited a 70 percent stake in the firm when it merged with HBOS this year.

The report said although Wood only owned 24 percent of the shares, legal clauses meant he had in effect control of the business.

A spokeswoman for Lloyds declined to comment.

($1=.6030 Pound)