Anger at AA over merger

THE AA has confirmed that it held discussions about a possible merger of its insurance division with rival Hastings, a move which is reported to have led to a blazing board-level row.

The roadside recovery firm said in a stock market announcement that “preliminary discussions” with Hastings were held in early summer to “explore a possible combination of the AA’s insurance business with Hastings”.

The attempted spin-off led to a physical altercation between executive chairman Bob Mackenzie, who was thought to be opposed to the merger, and AA insurance chief Michael Lloyd, according to the Financial Times.

In August the AA sacked Mr Mackenzie for gross misconduct, removing him with immediate effect. A spokesman said it was a “personal conduct-related matter”, but declined to give more information.

Hastings also confirmed the talks and in its own statement said: “The board confirms that the company did have preliminary discussions with the AA regarding a potential partnership with its insurance division, which have ceased. Whilst Hastings regularly reviews selective acquisition opportunities, its core strategy remains to deliver on its organic growth and its disclosed targets.”