Shares in Go Compare jumped more than six per cent this morning on the news that British entrepreneur Sir Peter Wood had increased his holding in the price comparison website.
Go Compare chairman Wood, who founded Direct Line, Esure and Sheilas’ Wheels, increased his shareholding in the company from 25.6 per cent to 29.9 per cent, saying he believed the share price was undervalued.
The move takes Wood’s stake to the highest level before he would be required to make a full takeover offer.
Wood said: "My share purchase underlines my view, which is shared by my fellow Board members, that the current Go Compare share price does not fully reflect the operational and strategic momentum in the business.
“I'm particularly excited about our Weflip brand and the potential opportunities it offers.
“If we deliver on our wider Savings as a Service strategy it will be brilliant for savers everywhere, reinforcing my decision to increase my holding to 29.9 per cent."
Russ Mould, investment director at AJ Bell, said: “British entrepreneur Peter Wood is a man to watch when it comes to all things insurance.
“So when he declares that Go Compare is far too cheap and buys another big slug of the business, you know both industry professionals and investors are going to sit up and take notice.”