Haverford boss says offer should have had price clause
Haverford chairman Mark Byrne admitted he should have made a “price adjustment clause” as part of his bid to buy a 25% stake in Lloyd’s insurer Omega, in an exclusive interview.
Byrne offered 83p a share in September, but lowered it to 74p after the insurer revealed deteriorating losses in the third quarter. The new lower offer led to a breakdown of talks just before Christmas.
A pre-agreed price adjustment clause might have smoothed the deal by automatically triggering a lower share offer on trading updates.
“For the fact the financial position of the company could change for the better or the worse materially during that time, it would seem to me, particularly for a cat-exposed company during the storm season, that it’s a good idea to have a price adjustment clause,” Byrne says.