Beazley Withdraws Offer for Hardy after ‘Final Proposal’ is Rejected

In a brief announcement Lloyd’s insurers Beazley plc and Hardy Underwriting Bermuda Limited noted that Beazley has withdrawn its offer to acquire Hardy.

The decision to withdraw the offer follows Hardy’s rejection of Beazley’s “final proposal,” submitted to Hardy’s Board on December 1. It set a price of “up to 350 pence [app. $5.55] per share for the entire issued and to be issued share capital of Hardy, subject to customary pre-conditions.”

Executives from the two companies met yesterday, December 13. Hardy’s announcement stated that its “advisers confirmed that the Hardy board would only be prepared to recommend a price substantially in excess of the Final Proposal and, as a result, Beazley today announces the withdrawal of its interest.”

In a separate move Hardy confirmed that the Arab Insurance Group (Arig) had announced that its newly formed corporate member of Lloyd’s (Arig Capital Limited) “has entered into a two-year tenancy agreement to participate on Hardy syndicate 382.” It will accordingly “take a 7.5 percent share of the syndicate in 2011.”

Hardy’s Chief Executive Barbara Merry described the investment as “another important development in the strategic relationship with Arig.”

Source: Hardy Underwriting Bermuda Limited; Beazley plc