Omega Confirms Byrne May Lower Bid
Bermuda-based reinsurer Haverford may lower its bid for a 25 percent stake in London-listed rival Omega, Omega confirmed today [Nov. 29] — just 24 hours before the offer is due to expire.
“[Haverford] has communicated the possibility of a new proposal at a fixed price or at a range with lower cap and floor prices than the current offer,” Omega said in a statement, adding that no reduced offer had yet been made.
A Haverford spokesperson declined to comment when contacted by the Reuter news agency.
Reports of a possible lower offer were news.cofirst circulated by Britain’s SkyNews yesterday [Nov. 28].
Haverford, led by Bermuda-based insurance entrepreneur Mark Byrne, had planned to buy into Omega at between 73 and 83 pence per share, with the final price set at the level required to achieve a 25 percent sale after each shareholder submits the minimum they can accept in a so-called Dutch auction.
Under the offer, unveiled in September, Omega shareholders have until Wednesday to accept.
News of Haverford’s potential lower offer comes one week after Omega revealed that its estimated losses from big natural catastrophes this year had increased by $6 million.
