Lloyd's has launched a product designed to cover US companies in the event of hostile bid or proxy contest.

Lloyd's broker Prentis Donegan & Partners helped develop the product. The cover reimburses costs associated with a hostile takeover.

The costs include investment bankers, public relations/advertising, attorneys, proxy solicitation, financial institutions, corporate management and printing/mail.

The product is in addition to the existing programme – the Aborted Bid Costs (ABC) Insurance policy, which reimburses public and private companies for direct costs associated with mergers and acquisitions transactions that have been terminated for reasons outside the control of the insured company.