Zurich has been granted an extension on its talks with British insurance firm, Beazley, on a potential £8bn takeover deal.

The Swiss firm has initially been granted a put up or shut up (PUSU) deadline of 16 February to either submit an offer or step down.

However, the deadline has now been extended to 4 March, as Zurich commenced a period of "confirmatory due diligence" with the support of the board and management of Beazley.

The firms stated: "The parties are simultaneously discussing the detailed terms of the transaction and progressing definitive transaction documentation. Accordingly, the Board of Beazley has requested, and the takeover panel has consented to, an extension of the PUSU deadline."

Head of markets at AJ Bell, Dan Coatsworth, concluded: "Beazley has been courted by Zurich for some time, and while it finally looked as if they were ready to get hitched, there still isn’t an official bid. So far, they’ve only agreed in principle on the terms of a takeover deal.

"Zurich has now been given extra time to finish its due diligence and decide if it is ready to commit to a new partner or walk away.

"The deadline to decide has now been extended from 16 February to 4 March. So-called ‘put up or shut up’ extensions are common, so the extra time isn’t necessarily a sign that Zurich is having second thoughts. It’s more likely the bidder is being thorough in its due diligence than anything else."

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