Lloyds bank set to disinvest stake in esure
Lloyds bank has today revealed plans to sell off its 70% stake in esure at a price which is believed to be in excess of the current book value of £185 million. It is believed that Peter Woods, co-founder and chairman of esure, is to acquire the stake via a new holding company. Those who follow the insurance market may be aware that Peter Woods, originally famed because of his Direct Line insurance creation, set up the esure business with HBOS back in 2001.
However, since HBOS became part of the Lloyds bank group there has been friction between Peter Woods and the Lloyds bank management and the sale of the Lloyds bank stake was expected by many. Esure is a well-known insurance brand in the UK and is also the owner of the infamous Sheilas Wheels brand with its array of striking adverts on the TV.
The company specialises in various niche markets and has made an excellent name for itself with profits topping £38 million in 2008. Quite what Peter Woods has in store for the future remains to be seen but he appears relieved to be on the verge of taking total control of his "baby".
Help to buy scheme extended for new homes until 2020
17/03/2014 House builders have been handed a boost by the government today as the chancellor announced that the first stage of the help to buy scheme will be extended until 2020, allowing a further 120,000 houses to be built. The first part of the ‘Help to Buy’ scheme is specifically aimed at helping people buy new build homes, and was originally expected to end in 2016. However, thi...Read More
Consumer confidence falls as the election approaches
The Nationwide consumer confidence indicators have shown a significant fall in March with consumers concerned about the up and coming election and changes in the tax regime. The index posted its largest monthly fall since July 2008 which is something of a bitter blow for the UK government which is aiming to show an economy on the up and consumer confidence following behind. There is no doubt th...Read More
Fears over fire sale of UK property
Fears are growing today regarding a possible fire sale of UK property assets as the UK government looks to increase capital gains tax charges. It is believed the government will increase the flat rate from 18% for non-business assets to anywhere in the region of 40% to 50%. It is unlikely that the capital gains tax changes would come into effect immediately and we could see a fire sale of UK prope...Read More
Is EDF set to offer 774p per British Energy share?
Rumours are rife that EDF is finally on the verge of tabling a new improved offer for long term target British Energy. The deal looks like going through after heavy intervention from the UK government which holds a 30% stake in the operation. However, there is some ill feeling in the City because investors had already rejected an offer just 9p lower having dismissed the terms as derisory. So wh...Read More
UK base rates to remain low for the foreseeable future
UK base rates are almost certain to remain at historically low levels for the foreseeable future after yesterday's disappointing gross domestic product data. Despite the fact that the Bank of England has injected billions upon billions of pounds of liquidity into the money markets there is no sign of a full steam ahead recovery in the UK economy. As a consequence, unless inflation balloons out of...Read More