Up your offer says Hardy Underwriting about share offer

Posted by on Oct 19, 2010 in Local News & Alerts | 0 comments

Courtesy Telegraph.co.uk

Hardy Underwriting Bermuda shares leapt Monday after the Lloyds of London underwriter rejected an approach from a rival, branding its offer as “far too low”.


Responding to a 300p-a-share takeover offer from Beazley, Hardy said the deal, which would value the company at £158m, “substantially” undervalued its business.

Hardy shares closed up 18.85 – 46pc – at 291¼p on the back of the Beazley offer, with both sides now attempting to woo shareholders.

Andrew Horton, chief executive of Beazley, said investors he had spoken to were supportive of the offer.

“We’re disappointed by their flat refusal to discuss our offer, but we will not be pursuing the deal without conducting full due-diligence and therefore we will not make a hostile approach.

“The offer we have made is fair and shareholders we have spoken to have been responsive and would like the board to at least discuss a deal,” he said.

Barbara Merry, chief executive of Hardy, would not comment on her discussions with shareholders and said the deal was “opportunistic”, taking advantage of a series of exceptional losses the business has made in the last year.

“This is far too low a price tag to be putting on this business,” said Ms Merry.

Mr Horton would not comment on whether Beazley would be making a revised offer for Hardy.

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