Hardy rejects Beazley approach

18th Oct 2010 07:17

Specialist insurer and reinsurer Beazley has gone public with its bid approach for underwriter Hardy Underwriting after its private approach was rejected by the Hardy board.Beazley made an indicative cash offer of 300p per share to the Hardy board on 6 October but received a rejection letter on 11 October which the company claims left its board "surprised and disappointed."Beazley remains committed to establishing a constructive dialogue with Hardy's board and shareholders with the intention of agreeing a recommended transaction. To this end, Beazley is announcing the proposal as a means of advancing that process, the company statement said.Beazley believes that the two groups are highly compatible. "Both have well-regarded underwriting teams, renowned track records of profitability and a shared objective to develop a diverse speciality insurance franchise," Beazley said.Hardy shares were trading at a mid-market price of 244p on Friday, the day before Beazley went public with its approach. The shares were trading at less than 220p earlier this month.