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Daily Insurance Industry News
Monday 20th of August 2018
January 22, 2008

Ironshore Bid For Heritage Collapses

by Stewart Douglas

Story link: Ironshore Bid For Heritage Collapses

Lloyd’s insurer Heritage has today announced that the proposed takeover bid from Ironshore has collapsed following the rejection of two initial offers from the company as a result of the cash valuation placed on the approach, paving the way for a number of other interested parties to declare their interest in the insurer.

Ironshore made an initial bid last month for the company, which was rejected at 135p a share as being too weak in terms of valuing the company, following which an improved offer was also rejected prior to today’s announcement that the deal had fallen through altogether.

Intimation from the Ironshore board of directors came several days ago to the effect that there would be no more offers forthcoming for the firm, which paved the way for today’s announcement to the Stock Exchange, which noted that whilst there has been the collapse there have also been a number of other approaches which are still at a preliminary stage.

For shareholders of Heritage, this means there is still a reasonable chance that the company could be bought over in the near future, despite the fact that there has as of yet been no disclosure of the identity of any of the rumoured linked parties.

Whilst Heritage was optimistic about its future, it did stress to the Stock Exchange and to its shareholders that talks were at a very preliminary stage, and there may or may not be any resultant firm offers from the current discussion process.

Nevertheless it remains that Heritage could be up for sale, despite the fact that any Ironshore hook-up is now out of the question.

“Based on public information and discussions with Heritage it has become clear that the parties are unable to reach agreement on the terms of a recommended offer. Ironshore confirms that it has no current intention of making an offer for Heritage,” commented Ironshore on the collapse of the deal.

 

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