Benfield bosses' bonanza as Aon grabs it at £844m

Harding made a fortune after he led a management buyout of Benfield 20 years ago. But the man who was also deputy chairman and a huge investor in Chelsea Football Club died in a helicopter crash on his way home from an away game at Bolton in 1996.

Today two of his colleagues in the original buyout agreed a deal which will see them each collect tens of million of pounds.

Chief executive Grahame Chilton will receive almost £80million and chairman John Coldman will get £50million for their share stakes in the company.

But the vast majority of Benfield's 2000 employees own shares or share options, which means they will share a further £100million-plus bonanza.

Aon is offering 350p a share, which is a 29% premium to Benfield's closing price last night.

The world's third-largest reinsurer has long been a takeover target for the likes of Aon, Willis and Marsh & McLennan. The shares rose 79p to the offer price, suggesting the market thinks there is little chance of rival bid.

In the past Chilton has rejected tentative takeover approaches, describing would-be suitors as having "champagne tastes but beer money".

In the past two years Benfield's business has come under pressure from the weakness of the dollar, rising costs and falling reinsurance premiums.

Harding, who left school with a single A level, was very much the King of the London insurance market in his prime.

His brash manner and vibrant lifestyle meant that he was the fans' favourite at Stamford Bridge, where he was seen to be in regular conflict with the then chairman Ken Bates.

At the time of his death in 1996 Harding's stake in Benfield was reckoned to be worth £125million, which made him the 89th wealthiest person in Britain.

Some years after his death the business was floated on the London stock market in 2003 with an initial valuation of £575million.