PETER WOOD LOOKS AT ESURE BID

Direct Line founder Peter Wood has lined up financing to back a buyout of motor insurer Esure from Lloyds Banking Group, reported yesterday's Sunday Times. Mr Wood is understood to have gained the backing of private equity operation Penta Capital and the hedge fund Toscafund. Both these are chaired by George Mathewson, former chairman of the Royal Bank of Scotland. The deal values Esure, of which Mr Wood is chairman, at between £200m and £250m ($330m to $412m). Esure was set up by Mr Wood in a joint venture with Halifax Bank of Scotland in 2001, with Lloyds "inheriting" the business when it bought HBoS. Mr Wood, who owns a 24% stake, but retains effective control, was said to be unhappy at Lloyds' alleged implication in some press releases that Esure was a subsidiary rather than a joint venture.