Ironshore Confirm Interest In Heritage

by Stewart Douglas

Story link: Ironshore Confirm Interest In Heritage

London Lloyd’s insurer Heritage Underwriting has today been announced as a desired takeover target for Bermuda based Ironshore, at a time where the firm has been subject to a number of approaches over the last year.

Heritage previously rejected an approach for takeover stating that it undervalued the business and assets of its business, implying initially that it was likely to be hostile to any other predators thinking of making a bid.

In a statement released today on the situation, Ironshore said that it would be approaching Heritage for a takeover bid following compliance with the legal requirements prior to launching any formal approach.

The statement suggested that off the back of the recent speculation it would be moving for Heritage Underwriting which may or may not result in a transaction to the value of all the current issued share capital from the insurer.

Further it clarified “[t]his announcement does not constitute an announcement of a firm intention to make an offer under Rule 2.5 of The City Code on Takeovers and Mergers and accordingly there can be no certainty an offer will be made.”

However it is thought that the likelihood will see a formal approach launched for the company, despite no guarantees as to whether or not any bid will be accepted by the board and shareholders of Heritage.

The move follows hot speculation as to the future of Heritage, which has found itself a much sought after property in light of several expressions of interest in acquisition.

Any formal bid would require initially to be agreed with the apparently hostile board prior to passing a vote amongst members before getting the go-ahead. A formal launch is expected over the next few weeks.