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Insurance tycoon targets Saga
April 2 04
Insurance tycoon Peter Wood is reportedly planning to takeover over-50s holiday group Saga.
Mr Wood is expected to run the financial services operation of the Saga group following its £1 billion sale.
The tycoon, who made his fortune from Direct Line telephone car insurance, now runs e-sure and First Alternative for banking group HBOS.
He has denied being involved in any bid team, but added: "I could be brought into the loop at any time."
Mr Wood is not likely to abandon First Alternative if he becomes involved with Saga and experts predict that HBOS would provide funds for any bidder.
Saga is currently the target of numerous bids from venture capitalists, despite a planned stock flotation, The Guardian newspaper reports.
The company's financial services arm specialises in selling insurance to the over-50s and has an 8 million-strong client base.
Cinven, Apax, JP Morgan, Candover, HG Capital and Montagu are all believed to have approached UBS, the investment bank handling the sale.
Expressions of interest must be submitted by Thursday and the auction will take place in September.
Market analysts are predicting that Saga will abandon its stock market plans and go instead for an outright sale.
Any successful bidder is likely to split Saga in two, with its financial services arm separated from the holiday side of the business.
Saga makes 90 per cent of its £82 million profit from its insurance arm.
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