Haverford could cut Omega offer

Bermudan investment firm Haverford may offer a fixed price for Lloyd’s insurer Omega or a lower range than the current 70p-83p.

Omega announced to the London Stock Exchange this morning that Haverford had indicated the possibility of a new proposal containing one of these changes but has yet to receive the proposal.

Haverford’s existing offer to buy 25% of Omega for up to 83p a share lapses tomorrow.

The news closely follows Omega’s announcement that its 2011 catastrophe losses would be worse than initially expected. Losses already reported in the first half of the year had deteriorated by $6m (£3.9m), while the company had incurred $10m of new losses in the third quarter.

Haverford beat off a number of suitors, including Lloyd’s insurers Canopius and Barbican, for its chance to buy the stake in Omega. Haverford’s bid was the only one approved by asset management firm Invesco Perpetual, Omega’s largest shareholder.

Haverford is chaired by Flagstone Re co-founder Mark Byrne. If his deal his successful, he will become executive chairman of Omega and his father, insurance magnate Jack Byrne, will join the Lloyd’s insurer’s board.