Omega vows to continue bid, as shareholders stand by Hardy chief executive
Merger talks between Hardy Underwriting and Omega have stalled because of a "clash of personalities", according to Lloyd's sources.
Hardy has rejected two merger offers from Omega, the most recent on Friday after major shareholders, accounting for 29% of the underwriter's shares, wanted bid talks dropped.
Omega retaliated with a commitment to pursuing the takeover. A source close to Omega said there was "frustration" at Hardy's reluctance to move forward.
One senior Lloyd's source said if a merger were to go ahead the first Hardy casualty would be its chief executive Barbara Merry, which had proved to be a hurdle for the merger plans.
The source said: "Merry was with Omega for a short while when she first left Lloyd's. She then left to go to Hardy and there was no love lost between the two."
Sources close to Omega said there would only be room for one chief executive at the newly formed company, namely Omega chief executive Richard Tolliday.
There are also issues over how Omega proposes to make its payment for the company, with suggestions that a cash offer would be preferable to paper.
Sources close to Hardy said market speculation about the possible takeover had been unhealthy for the company. "Hardy has to make a decision in the interest of shareholders," the source said. "Shareholders who are dual shareholders are only interested in one thing and that is the offer price."
