18 October 2017

Admiral ends Confused sale talks as Tesco eyes price comparison market

13 July 2007  |  8525 views  |  0 hands at a keyboard

UK insurance group Admiral has ended discussions with private equity firms over the sale of a minority stake in its price comparison Web site Confused.com after failing to agree a price.

In a statement Admiral says the potential minority investors typically expressed an interest with an implied valuation of the entire business in the range of £600 million to £650 million.

Admiral did not disclose the size of stake sought by the private equity buyers, but it is rumoured to have been about 25%.

The group has now ended the sale and described the private equity demands as "significantly more onerous than the board had anticipated".

"The board has therefore concluded that this weakening in its flexibility to determine the strategy of Confused would restrict the ability to maximise Confused's potential as part of the Admiral Group in the medium to long term," says Admiral in a statement.

Admiral said in May that it had received approaches from several parties regarding a sale of Confused. At the time analysts estimated the company could be worth up to £700 million.

Market speculation had also focused on whether Admiral was looking to sell off its price comparison business ahead of the launch of a rival service by Tesco Personal Finance, a 50:50 joint venture between the supermarket and the Royal Bank of Scotland (RBS).

Tesco Personal Finance is thought to be gearing up to launch an online price comparison service in the autumn. Spokesman Matthew Dransfield confirmed that the supermarket bank has registered the domain name tescocompare.com but refused to comment further.

Meanwhile another comparison site, moneysupermarket.com, is set to float on the London Stock Exchange at the end of July. It has set an indicative price range of 170 pence to 210 pence per share for its listing, which values the business at £1 billion.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Moneysupermarket.com signs London Internet portal deal

Moneysupermarket.com signs London Internet portal deal

02 July 2002  |  3415 views  |  0 comments
Lycos to offer consumers comparative financial aggregation

Lycos to offer consumers comparative financial aggregation

23 August 2001  |  3316 views  |  0 comments
Moneysupermarket.com launches UK mortgage auction market

Moneysupermarket.com launches UK mortgage auction market

08 August 2000  |  3092 views  |  0 comments

Related company news

visit www.fivedegrees.nl visit www.vasco.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15449 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8652 views comments | 16 tweets | 22 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
8218 views 0 | 8 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
7714 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6914 views comments | 9 tweets | 17 linkedin

Featured job

New York, NY - USA (some flexibility on location)

Find your next job