Cox Insurance Holdings has confirmed it is in the early stages of talks with Highway insurance Holdings about a possible bid.
Cox said it envisaged that any deal would be by way of a recommended share-for-share offer, with no cash alternative.
Until due diligence has been completed, Cox said it would be unable to say whether the talks would result in an offer for Highway.
It said it would be seeking to confirm whether a takeover bid for Highway would be “significantly accretive” to the company's asset values and earnings.
Cox instructed its shareholders to take no action at present. A further announcement will be made in due course, it said.
