THE boss of Belgian insurer Ageas is reportedly flying to China to meet its largest shareholder amid speculation he is trying to gather support to raise its £3.2bn takeover offer for Direct Line.

The Belgian insurer is said to be mulling another run at the UK operation after being rebuffed twice.

Ageas chief executive Hans De Cuyper met senior staff at Chinese conglomerate Fosun over the weekend according to The Sunday Times. The group, which owns Wolverhampton Wanderers, holds a 10 per cent stake in Ageas.

The news comes after the firm made two cash-and-share offers to buy Direct Line which was unanimously rejected by the insurer's board, calling them "uncertain, unattractive" and "highly opportunistic".

Ageas' first offer valued Direct Line at roughly £3.1bn, while its second offer valued the company at some £3.2bn - around half of Ageas' market capitalisation.

Ageas is not proposing a shareholder vote on the deal but needs approval from investors to issue the new stock to fund a potential acquisition, meaning Fosun's support could be crucial.

(c) 2024 City A.M., source Newspaper