Apollo, the private equity firm has decided to meet its advisors this weekend to discuss the inclination in its £785m offer for Brit Insurance.

This US buy-out house has already jumped into the tested waters for the direct negotiations with Brit's shareholders after its £10-a-share bid was rejected earlier this week.

The shares in the Lloyd's of London insurer, roused by 20pc to 880p after Brit claimed the Apollo's offer significantly undervalued by the group.

Although the company officials said that the board has advised Apollo that it is shall not be ready to discuss anything further until a higher price offer is made, which shall be capable of recommendation.

However Brit is a lucrative attraction to all the investors as the high dividend yield of this firm is somewhere around 7pc, which reflects the strong cash resource of Brit. According to analysts the companies across the Lloyd's market is weighed undervalued, at the moment.

Amongst the many leading investor, one of them acclaimed that it would now look forward for the discussions with Brit's management about the offer but also agreed that Apollo's bid was too low. Further expressing its view the investor added that the company should just simply accept an offer in this region as Brit is a very good offer and is playing well in its sector.